If the Exponents in the Production Function Were 0

question 10

Multiple Choice

if the exponents in the production function were 0.80 for x₁ and 0.20 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

• A)constant, would
• B)decreasing, would not
• C)increasing, would
• D)constant, would not
• E)decreasing, would

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Definitions:

Nitrites

Compounds containing the nitrite ion, NO2−, often used in food preservation and potentially harmful in high concentrations.

Bicarbonate

A bicarbonate ion (HCO3-) or a salt containing it, which acts as a buffer to maintain the pH balance in blood and other fluids.

Greenhouse Effect

Reradiation of solar heat toward the Earth, caused by an atmosphere that allows the sun’s rays to pass through, but traps the heat in the same manner as the glass of

Hydrological Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes like evaporation, condensation, and precipitation.