If the Exponents in the Production Function Were 0

question 25

Multiple Choice

if the exponents in the production function were 0.60 for x₁ and 0.40 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 not
• B)increasing, would
• C)decreasing, would not
• D)constant, would
• E)decreasing, would

Comprehend how the price elasticity of demand for a good affects the efficacy of a tax in discouraging consumption.

Recognize the relationship between the price elasticity of demand and tax revenue generation.

Identify when a tax on goods is likely to be effective in both reducing consumption and generating revenue.

Understand that the impact of a tax on consumption can depend on the availability of substitutes.

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Definitions:

Clay Minerals

A group of hydrated silicates of aluminum, sometimes with iron, magnesium, or other cations, which possess fine-grained structures and are a major component of soils.

Plant Cover

The layer of vegetation or plants that covers the ground in a specific area, crucial for maintaining ecosystems and influencing water and soil quality.

Erosion

Erosion is the process by which natural forces like water, wind, ice, and gravity wear away rocks and soil, transporting them from one place to another.

Angle of Repose

The sharpest incline at which a specifically loose material remains stable without collapsing.