In an economy consisting of only two goods, corn and cloth, the amount of extra cloth that can be produced efficiently if corn output is reduced by one unit is equal to:
a. the rate of technical substitution for corn divided by the rate of technical substitution for cloth.
b. the rate of technical substitution for cloth divided by the rate of technical substitution for corn.
c. the marginal cost of producing cloth divided by the marginal cost of producing corn.
d. the marginal cost of producing corn divided by the marginal cost of producing cloth.
d
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A well-capitalized bank:
A) does not have stockholders' equity. B) is prone to bank runs. C) owns far more than it owes. D) only accepts deposits but does not advance loans.
Nominal gross domestic product (GDP) is measured in terms of the _____
a. current-year prices b. base-year prices c. export of goods and services d. amount of taxes collected e. hours of employment
Which of the following exemplifies a vertical restraint imposed by a franchisor in a contract?
a. A clause prohibiting a franchisee from using the company trademark to support a political candidate. b. A clause prohibiting a franchisee from announcing special offers during Christmas to attract customers. c. A clause prohibiting a franchisee from bundling two products of the same company. d. A clause stating the target sales to be achieved by the company during an accounting year.
During an inflationary period with full employment or near-full employment,
a. a progressive income tax structure will worsen inflation. b. unemployment taxes paid by workers will be low. c. total unemployment benefits will be maximized. d. lower disbursements for unemployment compensation will moderate inflation.