Tag: Economics – Others

Which products below are examples of “substitute” products?
A. noodles and airplane tickets
B. Coke and Pepsi
C. baseball gloves and baseballs
D. diamonds and coal

Consider the following production function: y = f(L, K) = L
0.2
K
0.5
, where L is the amount of labor that the firm uses, K is the amount of capital, and y is output.

A shift in the demand for labor will NOT occur if the:
-Price of labor falls
-Productivity of Labor Increases
-Productivity of labor decreases
-Price of Capital decreases

Amy also consumes only food () and Uber rides (), but her utility function is . Given 42 and 216, what would make Amy indifferent if were to decrease by 208?

If Sam does not have a job and is not looking for work, he is considered unemployed and not in the labor force.

What is NOT one of the key tools by which the Federal Reserve implements monetary policy?
open market operations
policy directive
reserve requirements
discount rate

purchase of flour by a pizza parlor is?
a. counted as part of investment
b. counted as part of comsumpsion
c. counted as part of government
d. Nor counted as GDP

Suppose a price floor is non-binding. Either an increase in demand or a decrease in supply could turn the non-binding price floor into a binding price floor.
True
False

The price elasticity of supply for a supply curve that has infinite slope is
A. zero
B. undefined
C. positive but approaches zero as production increases
D. one

Paolo’s opportunity cost of producing 1 bushel of barley is bushels of alfalfa, whereas Sharon’s opportunity cost of producing 1 bushel of barley is bushels of alfalfa.