What is the cost-minimizing equilibrium condition?
What will be an ideal response?
The cost-minimizing equilibrium condition is for the slope of the isoquant (-MPL/MPK) to be equal to the slope of the isocost line (-PL/PK).
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During the Great Depression, what appeared to be ________ fiscal policy was actually not when the ________ budget deficit or surplus is examined
A) expansionary; cyclically adjusted B) contractionary; actual C) expansionary; actual D) contractionary; cyclically adjusted
The principal difference between economic profits for a monopolist and for a competitive firm is that:
a. monopoly profits create major problems of equity whereas competitive profits do not. b. competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well. c. monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not. d. monopoly profits are usually larger than competitive profits.
The key to understanding trade balances is to understand the relationships between flows of trade and flows of international___________________________.
a. relocation b. goodwill c. shipments d. payments
Air travel from New York to Miami costs $300 and takes 6 hours. A bus ticket between the cities costs $150 and takes 56 hours. Other things constant, the minimum value of one's time that would induce a rational individual to fly rather than drive would be
a. $1 per hour. b. $3 per hour. c. $5 per hour. d. $50 per hour.