On an isoquant/isocost graph, the least cost input combination of producing a given output is
A) given by the tangency between the isoquant curve and the isocost line.
B) any point on the isocost line.
C) any point on the isoquant curve.
D) one of the intercept values on the graph.
A
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The question, "What is really more efficient?" could usefully be translated into the question:
A) "What is the best long-term solution?" B) "What will best promote social welfare?" C) "What will produce the most economic value?" D) "Who should have the right to decide?" E) "What will produce the most rapid rate of economic growth?"
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
Prior to 1996 the government measured real GDP using 1987 prices. What would the rapid growth in computers and the fall in computer prices tend to do to the difference between true GDP growth and measured real GDP growth, relative to using a later year?
What will be an ideal response?