Assuming convex producer choice sets, the (marginal) technical rate of substitution is equal (in absolute value) to the ratio of input prices at any profit maximizing production plan.
Answer the following statement true (T) or false (F)
True
Rationale: This is the condition for cost-minimizing -- which must hold for profit maximizers.
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The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The government has a budget
A) surplus of $60 billion. B) deficit of $20 billion. C) surplus of $20 billion. D) deficit of $60 billion. E) surplus of $40 billion.
The free-rider problem is
A) the use of private goods in one state by residents of another state. B) the incentive that people have to avoid paying for a public good. C) the incentive that people have once they are receiving welfare to keep getting welfare. D) that people cannot be forced to accept public goods.
The use of foreign exchange reserves to keep exchange rates constant over time is called
A) a fixed exchange rate system. B) the Bretton Woods system. C) barter exchange system. D) a floating exchange rate system.
Which of the following is not included in any of the measures of the money supply?
A. Currency in circulation outside of commercial banks. B. Cash in the vault of a commercial bank. C. Credit union share drafts. D. Transactions account balances at mutual savings banks.