The steeper an isoquant is,
A) the greater is the marginal productivity of labor relative to that of capital.
B) the greater is the substitutability between capital and labor.
C) the greater is the need to keep capital and labor in fixed proportions.
D) the greater is the level of output.
A
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Government purchases include all of the following except:
A. the construction of a new court house built by a county government. B. the purchase of new military hardware by the U.S. Army. C. social security benefits paid by the federal government. D. the salary paid to an elementary school teacher employed by a local public school district.
Some researchers argue that the American Revolution was probably inevitable. The most important factor, of those listed below, was/were
(a) prohibitions against trade with nations other than England and severe exploitation of the colonists under the Navigation Acts, which kept the standard of living low in the colonies. (b) excessive taxation which for generations kept the after-tax incomes of the colonists below those in England. (c) a series of revenue-raising measures imposed on the colonists at the end of the French and Indian War for the purpose of making the colonies more self-supporting. (d) British prohibitions against the use of slaves in the lands west of the original thirteen colonies.
Efficiency in the choice of outputs requires that marginal cost be equal to marginal revenue and nothing else.
Answer the following statement true (T) or false (F)
After 1970, the share of federal spending allocated to national defense:
A. declined sharply, while the share allocated to income security increased substantially. B. rose sharply, while the share allocated to income security declined substantially. C. was relatively constant, while the share allocated to income security declined modestly. D. declined modestly, while the share allocated to income security was relatively constant.