If the cost of labor increases, the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
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If a bank borrows funds for three years, the borrowing will be classified as:
A) demand deposits. B) short-term borrowing. C) stockholders' equity. D) long-term debt.
What can explain the failure of relative PPP to hold in reality?
What will be an ideal response?
Constant returns to scale exist over the range of output for which the long-run average cost is:
a. neither rising or falling. b. falling. c. rising. d. none of these.
Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise
a. True b. False Indicate whether the statement is true or false