If capital is fixed, but a firm varies labor
A) the firm stays on the same isoquant.
B) the firm moves to a new isoquant.
C) the firm might move to a new isoquant, depending on how much labor is added.
D) the firm's output will be dependent on the marginal rate of technical substitution.
B
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Which of the following situations is descriptive of the existence of a negative externality.
A. Vernon studies for his biology test late into the night and oversleeps the next morning, thus missing the test. B. Nancy is in the library looking for a book. She is talking to herself and consequently disturbs a few people in the library. C. Bob learns later that he could have purchased a pair of shoes for less than he paid. D. Jackie has had the flu and has stayed in bed for a week. E. none of the above
If the average propensity to consume is 1.0, the marginal propensity to consume is 0.8, and real disposable income increases by $100, the additional saving is
A) $0. B) $20. C) $80. D) $100.
A stockholder who owns 1,000 shares of the corporation's 100,000 shares is entitled to what percentage of the vote in an election of corporate officers?
a. 1% b. 2% c. 5% d. 10%
Figure 10.7 A Reduction in the Proportional Tax Rate
What will be an ideal response?