AP (Advanced Placement) Macroeconomics: Questions 624 - 626 of 750

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Question 624

Appeared in Year: 2020 (NET)

Question

MCQ▾

In the study of International Economics, we use the tools of (September Evening Shift)

Choices

Choice (5)Response

a.

Macroeconomic theory only

b.

Microeconomic theory only

c.

Both micro and macro-economic theory but we all extend, adapt, and integrate them

d.

Neither micro nor macro-economic theory

e.

Question does not provide sufficient data or is vague

Question 625

Appeared in Year: 2020 (NET)

Question

MCQ▾

Markowitz theory of portfolio management considers which of the following assumptions?

A. Investors are pessimistic about start-ups but optimistic about an established business

B. Investors have free access to fair and correct information on return and risk

C. Investors have a tendency to lean towards crypto currencies

D. Investors are rational and maximize their utility with a given level of income and money

Choose the correct answer from the options given below:

(September Evening Shift)

Choices

Choice (5)Response

a.

C and D only

b.

B and D only

c.

A and C only

d.

A and B only

e.

None of the above

Question 626

Question

MCQ▾

The price of labor is $ 2 and the price of capital is $ 1. The marginal product of labor is 200 and the marginal product of capital is 50. What should the firm do?

Choices

Choice (5)Response

a.

Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.

b.

Increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls.

c.

Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.

d.

Decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.

e.

Increase both capital and labor until the ratio of marginal products per dollar is equal.

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