The rate at which one input can be substituted for another is shown by:
A. the slope of a firm's production function.
B. the slope of a firm's efficient production frontier.
D. the shape of a firm's production function.
C. the slope of a firm's isoquants.
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Total physical product shows what happens to the quantity of a firm’s output when that firm changes the quantity of an input in the production process.
Answer the following statement true (T) or false (F)
Answer the following questions:
a. What is the equation of exchange? Explain each component. b. What assumptions are placed on the equation of exchange to generate the quantity theory of money? c. Explain the quantity theory of money and what it implies about the impact of changes in the money supply on real output and prices.
An example of a(n) ________ comparative advantage is U.S. consumers buying automobiles produced in Japan because Japanese companies have a reputation for producing a higher-quality automobile than those produced in the United States.
A. subsidized B. acquired C. natural D. unwarranted
Answer the following statement(s) true (T) or false (F)
1. When an increase in marginal productivity increases workers' nonlabor income, the effect on the quantity of labor supplied is ambiguous. 2. A permanent increase in workers' marginal productivity causes employment to rise by more than if the increase were temporary. 3. A technological improvement that is permanent is more likely to raise employment than one that is temporary. 4. Education is partly investment but also partly consumption. 5. All other things being equal, firms that provide on-the-job training to workers will tend to pay higher wages.