The marginal rate of substitution of an isoquant curve is the rate at which:
A. inputs must be substituted for one another to keep costs constant.
B. the marginal productivity of a factor declines.
C. inputs must be substituted for one another to keep output constant.
D. inputs are substituted for output.
Answer: C
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Which of the following statements is false?
A. Under an emission tax, a tax is set and then the quantity of permissible pollution is determined. B. Under both emission taxes and tradable pollution permits polluters must pay to pollute. C. One possible approach to dealing with the problem of environmental negative externalities is a policy of tradable pollution permits, also known as cap and trade. D. Under a tradable pollution permits system, a price of pollution is set and then the quantity of permissible pollution is determined based upon that price.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In the ultimatum game, when the allocator and the recipient care about fairness, how is the distribution of $20.00 affected?
a. Allocators receive everything, and recipients receive nothing. b. Recipients usually reject offers of less than a 10 percent share. c. Allocators usually offer recipients a very small share. d. Allocators and recipients always end up sharing the $20.00 equally.
The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level. B. Cut the percentage of people in extreme poverty in half worldwide. C. Reduce the percentage of people in severe poverty in the poorest nations. D. Cut the absolute number of people in extreme poverty in half worldwide.