Isoquants are downward sloping because
A. if more of one input is used, then less of the other input must be used to keep output constant.
B. as more units of an input are used to produce a product, the firm's marginal productivity increases.
C. as more units of an input are used to produce a product, total cost increases.
D. Both B and C
Answer: A
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Refer to Figure 28-9. Fed Chairman Paul Volcker's response to high inflation of the late 1970s is depicted in the figure above as a movement from
A) A to D to C. B) A to B to C. C) C to E to B. D) C to D to A. E) C to B to A.
Refer to the above figure. Which of the following points indicates an efficient use of resources?
A) a B) d C) e D) More information is needed to answer the question.
A rise in the expected price level leads to an expectation that real wages will ____________, which will cause people to work __________, shifting the SRAS curve _______________
A) rise; more; rightward B) rise; less; leftward C) fall; more; rightward D) fall; less; leftward
If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, what is the labor force participation rate?
A) 4.75% B) 7.8% C) 95% D) 96.2%