The marginal rate of technical substitution shows
A) how many machines can be replaced by computers, keeping output constant.
B) how many computers are needed to replace workers so that output can increase.
C) the rate at which technology advances change marginal productivity.
D) how many workers can do the job of one computer, keeping output constant.
D
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Which of the following has a tendency to raise the unemployment rate?
A) reducing unemployment insurance in an economy B) offering wages at the market-clearing rate C) implementing a minimum wage in an economy D) reducing labor union membership in an economy
An important development indicator is the
a. Human Development Index b. purchasing power parity c. exchange rate d. Physical Quality of Life Indicator e. all of the above
Inflation caused primarily by an increase in aggregate demand is called stagflation
Indicate whether the statement is true or false
Implicit costs
A. Are the value of resources used for which no direct payment is made. B. Are the total opportunity costs of resources and inputs used to produce a good. C. Represent actual monetary payments made for resources used to produce a good such as oil. D. Include only payments to workers and lenders.