An isoquant represents levels of capital and labor that
A) have constant marginal productivity.
B) yield the same level of output.
C) incur the same total cost.
D) All of the above.
B
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________ in the expected future domestic exchange rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
_____ is the practice of using extra resources to compete for obtaining monopoly, and leads to _____
a. X-inefficiency; a deadweight loss b. Rent seeking; a deadweight loss c. X-inefficiency; a loss in producer surplus d. Rent seeking; a loss in producer surplus
Is the monetary policy reaction curve applicable only to central banks that have an explicit inflation target? Explain.
What will be an ideal response?
Other things the same, if the exchange rate changes from .8 euros per dollar to .9 euros per dollar, the dollar
a. depreciates so U.S. goods become less expensive relative to foreign goods. b. depreciates so U.S. goods become more expensive relative to foreign goods. c. appreciates so U.S. goods become less expensive relative to foreign goods. d. appreciates so U.S. goods become more expensive relative to foreign goods.