Constant returns to scale (CRS) implies that ________
A) increasing all the factor inputs by the same percentage lead to the same percentage increase in output
B) increasing all the factor inputs by the same percentage lead to a higher percentage increase in output
C) increasing all the factor inputs by the same percentage lead to a lower percentage increase in output
D) increasing all the factor inputs by the same percentage leaves output unchanged
E) none of the above
A
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The labor-force participation rate of a country is 50%, and the adult population is 150 million. If 30 million people in this country are employed, _____ people are unemployed
a. 50 million b. 120 million c. 45 million d. 60 million
Economics involves marginal analysis because:
A. most decisions involve changes from the present situation. B. marginal benefits always exceed marginal costs. C. marginal costs always exceed marginal benefits. D. much economic behavior is irrational.