Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs. Consider three statements about this function: I. The function exhibits constant returns to scale. II. The function exhibits diminishing marginal productivities to all inputs. III. The function has a constant rate of technical substitution. Which of these statements is true?

An economy is said to have a comparative advantage in the production of a good if it can:

A) produce that good with more resources than another economy. B) produce that good with a higher opportunity cost than another economy. C) produce that good outside its production possibilities curve. D) produce the good at a lower opportunity cost than another economy.

Would a union of all the restaurant workers in your area be more or less successful at winning wage increases without suffering employment losses than a union of all the pizzeria workers in your area? Explain