Question # 1 of 10 ( Start time: 12:22:29 AM ) Total Marks: 1
————— is the rate at which a firm can substitute capital for labor and hold output constant.
Select correct option:
Diminishing marginal returns
Marginal rate of substitution
Marginal rate of production
Marginal rate of technical substitution
Question # 2 of 10 ( Start time: 12:23:48 AM ) Total Marks: 1
An increase in the total output of a country over time is called:
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Inflation
Economic growth
Economic development
Unemployment
farm can produce 100 kilogram of apples per year with 2 workers and 400 kilogram of apples per year with 3 workers. The marginal product of the third worker is:
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100 kilogram.
300 kilogram.
400 kilogram.
500 kilogram.
Question # 4 of 10 ( Start time: 12:26:12 AM ) Total Marks: 1
According to the Real Business Cycles (RBC) School, fluctuations in output occur because of:
Select correct option:
Change in price level.
Change in technology.
Change in aggregate demand.
Unanticipated change in demand management policies.
Question # 5 of 10 ( Start time: 12:27:40 AM ) Total Marks: 1
Suppose the consumption function is C = 200 + 0.6 Yd. What is marginal propensity to consume?
Select correct option:
6
60
0.6
600
Question # 6 of 10 ( Start time: 12:29:08 AM ) Total Marks: 1
A risk neutral person always has ___________ marginal utility of income.
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