Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane)
If the wage rate paid to the pilots increases relative to the rental rate of capital for the airplanes, then: A) the optimal capital-labor ratio should increase.
B) the optimal capital-labor ratio should decrease.
C) the optimal capital-labor ratio remains the same.
D) We do not have enough information to answer this question.
C
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Anti-globalization and protectionism are both arguments against free trade. How do these two arguments differ?
What will be an ideal response?
Exports minus imports define a country's
A. Trade balance. B. Balance of payments. C. Capital account balance. D. Current account balance.
Out of all advertising spending, the largest share goes to
A. direct marketing. B. newspaper ads. C. false advertising. D. television ads.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose that money demand is currently at Point B. A movement to Point D could be caused by
A. an increase in the price level, ceteris paribus. B. an increase in nominal income, ceteris paribus. C. a decrease in the price level, ceteris paribus. D. a decrease in the interest rate, ceteris paribus.