The efficiency decision involves choosing the input combination or process that
A. Produces the greatest output.
B. Results in the least cost for a given output.
C. Has the lowest ratio of MPP to input.
D. Results in the lowest output per dollar of input.
Answer: B
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The purchasing power parity theory is a reasonably good explanation for nominal exchange rate determination:
A. in the short run. B. in the long run. C. when there are fixed exchange rates. D. when there are significant volumes of non-traded goods and services.
If production involves constant opportunity cost, the production possibilities curve
a. is "bowed inward." b. is a straight line. c. is "bowed outward." d. is a wavy line. e. has an unpredictable shape.
If a college textbook costs $80 (for a new book) at a college bookstore, the royalty paid on the book is likely
A. $9. B. $15. C. $5. D. $12.
Employers often end up laying off more workers during a recession due to ________
A) higher corporate taxes B) flexible wages C) tight monetary policy D) downwardly rigid wages