Refer to Figure 5.1. Observe the three isoquants depicted and determine which of the following statements is true.
A. K and L are substitutes in cases (1) and (2).
B. K and L are substitutes in cases (1) and (3).
C. K and L are substitutes in each of the three cases.
D. K and L are substitutes in cases (2) and (3).
Answer: B
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The table above shows the labor demand and labor supply schedules for a nation. The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billions of hours per year
A) $25; 260 B) $20; 280 C) $20; 260 D) $15; 260 E) $40; 320
The addition of imports reduces the value of the multiplier
a. True b. False Indicate whether the statement is true or false
If an airline overbooks it pays people who volunteer to leave the overbooked flight. This system is better than drawing randomly from a hat the people who should miss the flight because
A. it is quicker and helps keep the flight on schedule. B. it gives everyone a chance to get money they hadn't counted on. C. those with the least to lose are the ones who miss the flight. D. it is the most equitable way of solving the situation.
Refer to the information provided in Figure 23.9 below to answer the question(s) that follow.
Figure 23.9Refer to Figure 23.9. There is a $75 million decrease in unplanned inventories at an aggregate output level of
A. < $100 million. B. $100 million. C. $200 million. D. $300 million.