An isocost line is a line that represents combinations of:
A. output that can be produced from the same quantity of inputs.
B. factors of production that produce equal amounts of output.
C. factors of production that cost the same amount.
D. output that can be produced at the same cost.
Answer: C
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Which of the following is NOT an example of a capital good?
A) a miner's cap B) a GPS tracking device C) a stethoscope D) a U.S. government bond E) an airport kiosk
Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Therefore
A) U.S. producers have a comparative advantage in oranges. B) Canadian producers have a comparative advantage in beef. C) both countries could gain through specialization and exchange. D) all of the above are true. E) none of the above is true.
The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty
a. marginal b. absolute c. relative d. threshold
The labor supply curve
a) slopes upward if the income and substitution effects of a wage increase exactly offset each other b) is vertical if the income effect of a wage increase is dominant c) is downward-sloping if the income effect of a wage increase is dominant d) is vertical if the substitution effect of a wage increase is dominant e) is horizontal in the long run