The marginal rate of technical substitution may be defined as all of the following except:
a. the rate at which one input may be substituted for another input in the production process, while total output remains constant
b. equal to the negative slope of the isoquant at any point on the isoquant
c. the rate at which all combinations of inputs have equal total costs
d. equal to the ratio of the marginal products of X and Y
e. b and c
c
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The percentage share of income of the bottom quintile on curve X is
A. 0.
B. 5.
C. 10.
D. 15.
The controversy over affirmative action illustrates the
A. trade-off between equality and efficiency. B. incentive problems created by transfer payments. C. incentive problems created by personal income taxes. D. trade-off between progressive and regressive taxes.
What are the three types of monetary policy lags?
A) the recognition lag, the identification lag, and the implementation lag B) the recognition lag, the inflation lag, and the impact lag C) the recognition lag, the implementation lag, and the government lag D) the recognition lag, the implementation lag, and the impact lag
The Gini coefficient for Algeria is about 0.4. How would this number be shown on a Lorenz curve?
A. The length of the Lorenz curve is 40 percent longer than the line of equality. B. It cannot be shown; the Lorenz curve and the Gini coefficient are alternative ways of measuring inequality. C. The area between the Lorenz curve and the line of absolute equality is 40 percent of the total area under the line of equality. D. The area between the Lorenz curve and the x-axis is 40 percent of the total area below the line of equality.