The slope of the isoquant tells the firm how much
A) output increases when labor increases by one unit.
B) output increases when capital and labor are doubled.
C) capital must decrease to keep output constant when labor increases by one unit.
D) a unit of capital costs relative to the cost of labor.
C
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The cultural hypothesis of economic growth claims that:
A) most of the ancient cultures of the world have almost been forgotten post-globalization. B) different values and cultural beliefs cause differences in prosperity around the world. C) a common global culture is automatically created through liberal trade practices. D) values and cultural beliefs are proximate causes for differences in prosperity around the world.
The key characteristic of macroeconomics is the process of aggregation
a. True b. False Indicate whether the statement is true or false
As commercial banks keep fewer excess reserves, money creation
A. increases. B. decreases. C. remains the same, as long as banks hold no excess reserves. D. could either increase or decrease.
Suppose Frank is considering purchasing an asset that will have a future value of $1000 in 7 years. The interest rate is 6% and the price of the asset is $600. Should Frank buy the asset? Why or why not?
What will be an ideal response?