The slope of an isoquant tells us
A) how much output increases when both inputs are increased.
B) the increase in MPL when capital increases.
C) the decrease in capital necessary to keep output constant when labor increases by one unit.
D) the decrease in capital necessary to keep MPL constant when labor increases by one unit.
C
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One possible source of the first Eurocurrency account was a result of the
A) Cold War. B) Second World War. C) Oil Crisis in the 1970s. D) the Erie Canal.
Certain kinds of tropical fruits are impossible to grow outdoors in the United States. Suppose, however, that in order to create jobs in Wyoming, the U.S. government offered extensive subsidies to firms to produce bananas
With the subsidies, firms could build greenhouses and offer the fruit at world prices. A) The United States now has a comparative advantage in bananas. B) The United States has a comparative advantage, but is not competitive. C) The United States is competitive, but does not have a comparative advantage. D) The United States has a comparative advantage and is competitive. E) None of the above.
In the simple liquidity preference model, if the money demand curve is elastic, then:
A. small changes to the money supply will cause large changes to the interest rate. B. small changes to the money supply will cause insignificant changes to the interest rate. C. even large changes to the money supply will cause small changes to the interest rate. D. only large changes to the money supply will cause large changes to the interest rate.
If actual output exceeds potential output, ________ shifts upward over time.
A. the short-run AS curve B. the short-run AD curve C. the long-run AS curve D. the long-run AD curve