A graph showing all the combinations of capital and labor available for a given total cost is the
A. budget constraint.
B. expenditure set.
C. isocost line.
D. isoquant.
Answer: C
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A movement down along a given isoquant causes the marginal rate of technical substitution to:
A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information.
The techniques of government regulation in the U.S. are intended to increase the degree of competitiveness in the domestic and international marketplaces
Indicate whether the statement is true or false
The graph shown demonstrates a tax on sellers. Who bears the greater tax incidence?
A. The sellers
B. The buyers
C. The government
D. The incidence is equally shared between buyer and seller.
Answer the following statement(s) true (T) or false (F)
1.Producer surplus is the difference between the highest price a consumer is willing to pay for a product and the revenues the supplier receives for it. 2.Free trade might increase the prices paid by domestic consumers, but this negative effect is offset by gains experienced by producers. 3.Through free trade, wealth is sometimes redistributed from producers to consumers. 4.When a country exports a good, domestic consumers are negatively affected. 5.Imports hurt domestic consumers, but the losses are offset by producer gains.