Unlike indifference curves, isoquants can intersect
Indicate whether the statement is true or false
False. By the same logic as with indifference curves, the intersection implies the same level of output. Since output increases as one moves toward the northeast on the isoquant map, moving from the intersection one isoquant shows higher output and the other shows lower. This is contradictory.
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
A single-price monopoly transfers
A) consumer surplus to producers. B) producer surplus to consumers. C) economic profit to consumers. D) economic profit to the government. E) economic profit to deadweight loss.
Full employment: a. exists when, on average, nearly two out of three adults in the labor force are employed. b. exists when everyone who wants a job has one. c. exists when the unemployment rate is zero
d. exists when everyone in the labor force has a job. e. will always include some unemployment.
Economic surplus is another term for which of the following?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss