The least costly way to produce any given level of output is indicated by
A. the point of intersection between the isoquant corresponding to that level of output and the Y-axis.
B. the point of intersection between the isoquant corresponding to that level of output and the X-axis.
C. the isocost line corresponding to that level of output.
D. the point of tangency between an isocost line and the isoquant corresponding to that level of output.
Answer: D
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The Volcker Rule addresses the off-balance-sheet problem involving
A) trading risks. B) selling loans. C) loan guarantees. D) interest rate risks.
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers decreased from $17 to $12:
A. producer participation in the market would decrease. B. total producer surplus would remain unchanged. C. producer participation in the market would not be affected. D. producer participation in the market would increase.
Which of the following restricts the volume of international trade?
a. quotas b. well-enforced property rights c. a stable international monetary framework d. an increase in the rate of economic growth
The Callaway family owns a small bait and tackle shop in a resort town in Wisconsin. An economic recession reduces the number of tourists for one summer, which reduces the family's income for that year. For the Callaway family, their
a. transitory income for the year of the recession likely exceeds their permanent income. b. permanent income likely exceeds their transitory income for the year of the recession. c. permanent income will be more affected by the recession than their transitory income. d. Both a and c are correct.