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.
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
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.