If labor is measured along the horizontal axis and capital is measured along the vertical axis, an increase in the wage rate will cause the isocost line to:
A. rotate clockwise, causing the firm to use less labor and more capital.
B. rotate counterclockwise, causing the firm to use less labor and more capital.
C. rotate clockwise, causing the firm to use less capital and more labor.
D. rotate counterclockwise, causing the firm to use less capital and more labor.
A. rotate clockwise, causing the firm to use less labor and more capital.
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If India decides to enact environmental laws to reduce air pollution, what would be the effect on GDP?
A) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls. B) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP. C) GDP would increase as the citizens of India were made happier as the air pollution was reduced. D) GDP would increase reflecting the fact that the air would be cleaner.
Which of the following is an example of using money as a store of value?
A) paying for a new dress with a credit card B) paying cash for a new automobile C) paying rent with a check on a demand deposit D) keeping $200 on hand for an emergency
JoJo has a monopoly producing stringless yoyos. His company is called JoJo's Yoyos. As a result of his monopoly position,
A. he is guaranteed a profit. B. if he loses money in the short run, he will make money in the long run. C. his average total costs will always be lower than the price he charges. D. None of the choices are correct.
Mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgage payments are known as ________ mortgages
A) subprime B) Alt-A C) gray market D) reciprocal