L-shaped isoquants imply that production requires that the inputs
A) are perfect substitutes.
B) are imperfect substitutes.
C) cannot be used together.
D) must be used together in a certain proportion.
D
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Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply?
a. An increase in the required reserve ratio. b. An increase in the discount rate. c. Purchases of bonds in open market operations. d. Higher taxes on interest income.
For a profit-maximizing monopolist, the price of a product is: a. always equal to marginal revenue
b. always greater than marginal revenue. c. always less than marginal revenue. d. always equal to the average total cost of production.
If there is an active surplus (+) of +$30 billion and an actual deficit (-) of -$40 billion, then:
a. The full employment deficit must be -$70 billion. b. The passive deficit (-) must be -$10 billion. c. The full employment deficit (-) must be -$30 billion d. The passive deficit (-) must be -$70 billion. e. The passive surplus (+) must be +$40 billion.
Which of the following would not shift a market labor supply curve to the right?
a. a decrease in the wage paid to workers in a competing market b. labor-augmenting technology c. a change in worker tastes so that workers want to retire later d. an increase in immigration