The marginal rate of technical substitution (RTS) of labor for capital measures:
a. the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used.
b. the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used.
c. the ratio of total labor to total capital.
d. the ratio of total capital to total labor.
a
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of total economic surplus equals area(s)
A. B + C + E + F. B. B + C. C. A. D. E + F.
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Indicate whether the statement is true or false
Combating the "greenhouse effect" has classic free-rider problems
a. True b. False Indicate whether the statement is true or false
The CPI attempts to:
A. balance out the consumption of different types of people in different life stages. B. balance out the consumption of different types of people in different life situations. C. capture an average across a very large group of U.S. consumers. D. All of these statements are true.