Multiple Choice
It is useful to assume that there is a single representative consumer because
A) this is realistic.
B) this is a useful abstraction if we are interested in problems where distribution effects are not important.
C) this is the only model we know how to work with.
D) a model with one consumer is the same as one with many consumers.
Correct Answer:
Verified
Correct Answer:
Verified
Q37: An increase in total factor productivity<br>A) changes
Q38: The production function is concave in capital
Q39: A numeraire is<br>A) an average good.<br>B) a
Q40: The fact that indifference curves are downward
Q41: Suppose the representative firm suddenly has less
Q43: The principle that consumers and firms optimize<br>A)
Q44: Constant returns to scale means that,given any
Q45: The Solow residual is a measure of<br>A)
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Q47: A consumer's real disposable income equals<br>A) wage