If inputs into production cannot be substituted for each other but have to be employed in fixed proportions, isoquants are straight, downward-sloping lines
Indicate whether the statement is true or false
False. Isoquants are straight lines when inputs are perfect substitutes. When input relations are fixed they are right angles.
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Compare and contrast production efficiency and allocative efficiency
What will be an ideal response?
Over the past seventy-five years, power within the Federal Reserve has shifted from
A) the Federal Reserve Banks to the Board of Governors in Washington. B) the Board of Governors to the Federal Reserve Bank of New York. C) domestic Federal Reserve banks to foreign Federal Reserve banks. D) the Federal Reserve Bank of New York to the Federal Reserve Bank of Dallas.
The balance of payments ____
a. b and e b. is always zero c. is positive when the nation runs a trade surplus d. is negative when the nation runs a trade deficit e. is an itemized account of a nation's foreign economic transactions
Long-run average total cost must always be
a. rising b. declining c. greater than or equal to the marginal unit of variable cost d. greater than or equal to the short run average total cost e. less than or equal to short-run average total cost