The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the
A) marginal rate of technical substitution. B) isoquant substitution rate.
C) opportunity cost of inputs. D) input trade-off rate.
A
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Consumers pay the part of a tax associated with a higher price for the product.
Answer the following statement true (T) or false (F)
In a well-functioning financial market, the only way to get consistently higher returns over the long run is to take more risks. This is known as the
A. risk-return principle. B. fixed income principle. C. price appreciation principle. D. diversification principle.
________ in the United States ________ in most European countries
A) GDP per hour; is greater than GDP per hour B) Average weekly hours; are greater than average weekly hours C) The Okun Gap; is equal to the Okun Gap D) The Lucas Wedge; is greater than the Lucas Wedge E) Both A and B are true.
Which of the following statements is likely to be made by someone who believes in the new growth theory?
A) Population growth will limit long-run gains in real GDP per person. B) Competition will encourage discoveries of new ideas leading to greater economic growth. C) Choices made by human capital are likely to be inefficient. D) Economic growth will eventually slow. E) Although technological changes increase real GDP, these changes are random and unexplainable.