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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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
What are two benefits of the new miles-per-gallon requirements? Are these benefits in someone's self-interest or in the social interest?
What will be an ideal response?
A portfolio manager for a property and casualty insurance company who anticipates a recession is likely to shift the company's portfolio into
A) short-term securities. B) preferred stock. C) common stock. D) long-term corporate bonds.
) If consumption expenditures for a household increase from $1000 to $1800 when disposable income rises from $1000 to $2000, the marginal propensity to consume is
What will be an ideal response?