Refer to Figure 11-18. A curve that connects points A, D, and E is called
A) a total cost line. B) an expansion path.
C) an indifference line. D) an input-output curve.
B
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Does monetary policy require the accompaniment of fiscal policy to change total spending?
A) No, because the Fed is an independent agency of the federal government. B) Yes, because monetary policy can contract total spending but cannot by itself expand it. C) Yes, because no policy is effective if it only changes nominal money values. D) Yes, if the demand for money tends to change in about the same direction and amount whenever the supply changes.
Which of the following is correct?
a. Any event that changes the supply or demand for labor must change the value of the marginal product. b. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. c. An increase in the supply of labor increases both employment and wages. d. A decrease in the demand for labor decreases wages but increases employment.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Refer to the table below. A technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price. As a result of this technological change, equilibrium output in this market:
A. Decreased by 60 units
B. Increased by 60 units
C. Increased by 30 units
D. Decreased by 30 units