An isoquant shows the various combinations of labor and capital that
a. the firm will choose to employ in the long run.
b. yield the same total cost.
c. can produce some fixed level of output.
d. minimize the firm's average cost of production.
c. can produce some fixed level of output.
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The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.
A. True B. False C. Uncertain
The Fed's discount lending is of three types: ________ is the most common category; ________ is given to a limited number of banks in vacation and agricultural areas; ________ is given to banks that have experienced severe liquidity problems
A) seasonal credit; secondary credit; primary credit B) secondary credit; seasonal credit; primary credit C) primary credit; seasonal credit; secondary credit D) seasonal credit; primary credit; secondary credit
If the expected earnings of an investment project exceed all expenses except interest payments,
A) business firms will not undertake the project. B) business firms will undertake the project and raise prices later. C) business firms will not undertake the project but will borrow the funds. D) consumers will get lower prices.
Suppose that an employer hires workers with blue eyes and workers with brown eyes. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?
a. The employer will be just as cost efficient as a nondiscriminating employer. b. The employer will face higher costs than a nondiscriminating employer. c. The employer will have lower costs. d. The employer will have higher profits. e. Both a and c are correct.