Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows a decrease in the price of capital while the price of labor remains unchanged?
A) the movement from BF to AF B) the movement from BF to BD
C) the movement from AF to BF D) the movement from BF to CE
A
You might also like to view...
If original excess reserves are $10 million, and if the potential change in demand deposits is $153 million, then the demand deposit expansion multiplier is
A) 1.53. B) 0.65. C) 10.0. D) 0.07.
Which of the following is a method by which a poor country might import technological change without having to incur the heavy expense of research and development (not to mention human and physical capital formation) out of its own saving?
A) Copy modern products made in rich countries. B) Purchase imported machinery that embodies the latest technology. C) Obtain investment by foreign firms. D) All of the above.
Why does the president of the Federal Reserve Bank of New York hold a permanent seat on the FOMC?
A) The New York Fed is responsible for executing open market operations. B) A substantial amount of financial activity takes place in New York City. C) The Fed Board of Governors holds its regularly scheduled meetings in New York City. D) The Federal Reserve Bank of New York is the original Fed district; the other eleven districts were formed later by the Banking Act of 1935 E) a and b
A business produces eight items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is:
A. $20. B. $200. C. ?$190. D. $10.