Refer to Figure 1.7. The benefit of producing at point G rather than point D is
A. AB units of food.
B. KL units of clothing.
C. OA units of food.
D. OL units of clothing.
Answer: B
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The slope of the isocost line:
A) changes as the combination of labor and capital is altered by the firm. B) is equal to the ratio of the marginal productivities at all points along the isocost line. C) is equal to the negative of the ratio of the prices of the outputs. D) is equal to the negative of the ratio of the prices of the inputs.
All of the following are possible consequences of noise traders EXCEPT
A) increased volatility in the financial market. B) asset prices differing from fundamental values. C) herd behavior contributing to speculative bubbles. D) reduced volatility of asset prices.
Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone increases:
A. the average total cost curve shifts downward at all output levels. B. the marginal cost curve shifts upward at all output levels. C. the vertical distance between the average total cost curve and average variable cost curve increases at all output levels. D. the average variable cost curve shifts upward at all output levels.
A resource
A. only includes physical things. B. must come from the earth. C. is anything that we consume directly or use to make things we will ultimately consume. D. A) and C)