Changes in the price of an input cause:
A. isoquants to become steeper.
B. parallel shifts of the isocost lines.
C. changes in both the isoquants and isocosts of equal magnitude.
D. slope changes in the isocost line.
Answer: D
You might also like to view...
Suppose that when the price of good X falls from $10 to $8, the quantity demanded of good Y rises from 20 units to 25 units. Using the midpoint method, the cross-price elasticity of demand is
a. -1.0, and X and Y are complements. b. -1.0, and X and Y are substitutes. c. 1.0, and X and Y are complements. d. 1.0, and X and Y are substitutes.
Firms buy new capital goods only if they expect this investment to yield:
a. a higher return than other possible uses of their funds. b. the same return as other possible uses of their funds. c. no return as compared to other uses of their funds. d. a lower return than other possible uses of their funds.
Which of the programs below would not transfer wealth from young to old generations?
a. Taxes are reduced as a result of cutting expenditures on education. b. Taxes are raised to improve government infrastructure such as roads and bridges. c. Taxes are raised to provide more generous Social Security benefits. d. Taxes are raised to provide more generous Medicare benefits.
Which of the following was primarily responsible for establishing the euro?
A) Lisbon Treaty B) Treaty of Maastricht C) European Finance Act D) Single European Act