If a firm used a combination of inputs that was to the left of its isocost line, it would indicate that
A) it is exceeding its budget.
B) it is not spending all of its budget.
C) it is operating at its optimal point because it is saving money.
D) None of the above
B
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Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
A) a decline in the world real interest rate. B) a shift to the right in the German supply of loanable funds curve. C) an increase in the real interest rate in the United States. D) a shift to the left in the German demand for loanable funds curve.
When banks reduce the reserve ratio, the potential money multiplier
A) increases. B) decreases. C) remains unchanged. D) sometimes increases, and sometimes decreases depending on the rate of inflation.
The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance
a. True b. False Indicate whether the statement is true or false
Eduardo is a 19-year-old male who drives a sports car. He is a very safe, highly skilled driver, and he has never had an accident. He is angry when he learns his auto insurance premium is more than double that of his older sister, who is a terrible driver. Why are their rates so different?
a. Insurance companies want good drivers to leave the market. b. Insurance companies base premiums on risk categories rather than individual actions. c. Insurance companies want to keep poor drivers in the market. d. Insurance companies try to provide coverage to everyone equally regardless of skill.