A change in relative factor prices will always result in
A) a change in the slope of the isoquants.
B) a tangency between the new isocost line and a new isoquant.
C) a rotation of the isocost lines.
D) All of the above.
C
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A rapid increase in the availability of credit to previously underserved borrowers is likely ________
A) to result from financial liberalization B) to improve the allocation of capital C) to confirm the merits of microcredit D) to result from deleveraging
The central idea of supply-side tax cuts is that certain types of tax cuts will increase
a. aggregate demand. b. aggregate supply. c. the supply of imports. d. the supply of money.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Moral hazard takes place ______.
a. when a person cannot buy insurance b. when a person tries to be more cautious c. before a person becomes insured d. after a person has bought insurance