Suppose electricity (E) can be produced with coal (C) or gas (G) to operate steam turbines (T). Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes. E = min((G + .5C), T). The isoquants between gas and coal will be
a. hyperbolas
b. quarter circles
c. straight lines
c
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What would likely happen to the long-run aggregate supply curve if the U.S. federal government increases marginal tax rates on wages?
A) The LRAS curve would remain stable while the AD curve would shift leftward. B) The LRAS curve would remain stable while the AD curve would shift rightward. C) The LRAS curve would shift leftward. D) The LRAS curve would shift rightward.
Consider two individuals, Ozzy and Sharon, who produce toy boats and yoyos. Ozzy's and Sharon's hourly productivity are as follows:
Yoyos /hour Toy boats /hour Ozzy 12 4 Sharon 10 5 Who has the absolute advantage or comparative advantage in the production of yoyos or boats?
Ceteris paribus, how does a recession in the United States affect U.S. net exports?
What will be an ideal response?
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
What will be an ideal response?