An efficient allocation of productive inputs requires that:
a. each output has the same rate of technical substitution among inputs used.
b. each output has the same marginal rate of substitution for consumers.
c. each pair of outputs has the same rate of product transformation.
d. each individual has the same marginal rate of substitution between outputs.
a
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Exemptions are more desirable than deductions for a person in the 36% tax bracket.
A. True B. False C. Uncertain
The typical total profit graphical presentation is shown as
A. a square. B. a rectangle. C. a hill, or mound. D. an S curve.
After the September 11, 2001 attacks on the World Trade Center, the supply of downtown office space in Manhattan was dramatically reduced. Forecasters predicted that the equilibrium price would rise, but in fact the price fell
What are some factors that could explain the fall in the equilibrium price, which the forecasters failed to take into account? A) Demand for office space fell due to quality-of-life concerns. B) The economic slowdown caused demand for office space to fall. C) both A and B D) none of the above
Mary says she plans to return to college next semester assuming her car keeps running, tuition fees don't go up, and her daycare provider continues to be dependable. An economist would say that Mary plans to return to college next semester
A) caveat emptor. B) ceteris paribus. C) laissez faire. D) ipso facto.