Let the production function be q = ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1.
B) a + b > 1.
C) a + b < 1.
D) Cannot be determined with the information given.
B
Economics
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In an open economy under flexible exchange rates, a reduction in consumer confidence that causes a reduction in consumption will cause which of the following?
A) an appreciation of the domestic currency B) a reduction in the exchange rate, E C) a reduction in net exports D) all of the above E) none of the above
Economics
Based on the information shown in Exhibit 3, how much cloth can Wendy produce in one day using all of her resources?
a. 3 yards
b. 4 yards
c. 5 yards
d. 10 yards
Economics