Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Rational expectations involve: a. forecasts that are technically correct

b. forecasts that, while not necessarily correct, are the best that can be made given the available data. c. forecasts that accurately predict the short-term future for wages and prices. d. forecasts made by economists based on sophisticated econometric models.

A country is most likely to have a comparative advantage in the production of cars if:

A. its citizens prefer driving cars to other forms of transportation. B. it imports most of the raw materials necessary to produce cars. C. it has strict environmental protection laws governing automobile emissions. D. it has a relative abundance in the natural resources needed to produce cars.