In the long run
A. the expansion path shows how the input marginal products change as the firm's output level changes.
B. all inputs are fixed.
C. a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio.
D. both a and b
E. none of the above
Answer: C
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For a seller who is a price taker, marginal revenue is always
A) less than marginal cost. B) more than marginal cost. C) the same as marginal cost. D) less than price. E) the same as price.
Which of the following would be an example of a lump-sum tax?
A. A compensated tax. B. A retail sales tax. C. A head tax. D. An admission fee.
Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by worker in a job employing low-skilled labor b. the purchase of company stock by a worker c. a summer internship at a law firm filled by someone attending law school d. payments into a retirement pension plan by a skilled laborer
Increases in the capital stock:
a. Shift the short run aggregate supply curve upward b. Shift the long run aggregate supply curve to the right. c. Shift short run aggregate supply curves upward and long run aggregate supply curves to the right. d. Do none of the above