What is production function
Production function: It is the technological relationship among input and output of a firm and is termed as production function.
What is the condition when there is a deficit in balance of trade? Answer: When import > export
The phrase "market failure" refers to: (w) the failure of market economies to deal with social problems. (x) the Stock Market Crash of 1929. (y) cases where supplies and demands within private markets yield inefficiency, excessive or inequity instabil
Economic rent by a parcel of land is positively associated to the: (w) savings in transaction costs yielded by its location. (x) amount of idle land adjacent to this. (y) time this has been held by the current landowner. (z) amount of natural flora an
When you were unconcerned regarding the welfare of other people and your income placed you into the bottom five percent of the population, in that case you would be happiest when the Lorenz curve for your country resembled as: (1) line 0A0'. (2) line
In the year of 1996 McDonald's introduced its Arch Deluxe hamburger, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of: A) consumer sovereignty. B) technological change. C) downsloping demand
A house-hold maximizes the satisfaction it derives from the given income by: (i) Buying lottery tickets to save more wealth. (ii) The consumption pattern which matches demand prices with the market prices. (iii) Consuming goods and hence every good is enjoyed uniforml
Central bank executes the function of a clearing house. Explain how? Answer: Each and every bank keeps cash reserves with central bank. The claims of banks against
A Lorenz curve which is identical to a 45 degree line by the origin indicates as: (w) perfect equality of income distribution. (x) complete inequality of income distribution. (y) unitarily elastic supplies of labor. (z) which poverty is prevalent.
The Taft-Hartley Act prohibited strikes against the firm over the issue of which of two or more competing unions would symbolize the firm’s employees. These strikes are termed as: (i) Jurisdictional strikes. (ii) Strategic representation strikes
One main difference between income and wealth is which: (w) wealth is inherited, income is earned. (x) income generates wealth, wealth cannot generate income. (y) all income is subject to taxation, most wealth is not. (z) wealth is a stock variable, i
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