The aggregate production function of Ritland is Y = A × K0.3 × H0.7. The total output produced in Ritland in a certain year was worth $135,000
The technology used in the country improved over the next 10 years while the capital stock and the efficiency units of labor remained approximately the same. Which of the following is likely to be true in this case?
A) The Human Development Index of the country is likely to improve.
B) The gross domestic product of the country is likely to increase.
C) The gross domestic product of the country is likely to decrease.
D) The inflation rate in the country is likely to reduce.
B
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Which of the following would raise both the equilibrium price and the equilibrium quantity of strawberries?
a. A decrease in the demand for strawberries. b. An increase in the demand for strawberries. c. A decrease in the supply of strawberries. d. An increase in the supply of strawberries.
When a good is nonexcludable,
a. it is impossible or very costly to exclude nonpaying customers from receiving the good. b. individuals will have an incentive to become free riders. c. it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production. d. all of the above are true.