Suppose the production function for T-shirts can be represented as q = L0.25K0.75. When K = 1 and q = 2, what is the slope of the isoquant? If there is insufficient information to answer the question, describe what information is needed
What will be an ideal response?
Since the slope of the isoquant is -K/3L, one needs to know the level of L. Since K = 1 and q = 2, L must equal 16. Thus, the slope of the isoquant at this point is -(1/48).
Economics
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If there is no Ricardo-Barro effect, a government budget surplus
A) increases the demand for loanable funds. B) increases the supply of loanable funds. C) decreases the supply of loanable funds. D) decreases the demand loanable funds. E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.
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The problem of the commons is the absence of incentives to prevent overuse and depletion of the common resource
Indicate whether the statement is true or false
Economics