MCQ

1)A war has wrecked an economy. Assume capital stock and workforce has been reduced by 50% while there is no change in population size. The economys production function has constant returns to scale how will the post war level of output per worker compare to the pre-war level?

A) it will be higher

B) it will remain the same

C) it will be either lower or higher

D) it will be lower

2) which is the distinguishing feature of Long run labour market equilibrium?

A) Real wages are constant

B) The supply of labour Equal to the demand for labor

C) Number of firms is constant

D) The level of employment is constant