With a cubic production function of the form Q = aK3L3 + bK2L2, in order for the average and marginal product functions to have their usual theoretical properties, it must be the case that
A. a > 0, b > 0
B. a < 0, b > 0
C. a < 0, b < 0
D. a > 0, b < 0
Answer: B
Economics
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A tariff imposed on Japanese imports into the United States tends to:
A) penalize U.S. producers and benefit Japanese producers. B) benefit U.S. producers and penalize Japanese producers. C) penalize both U.S. and Japanese producers. D) benefit both U.S. and Japanese producers.
Economics
Suppose that the consumer price index of a country was 160 at Year X and 168 at the end of Year Y. What was the country's inflation rate during Year Y?
a. 5 percent. b. 8 percent. c. 60 percent. d. 68 percent.
Economics