The marginal rate of technical substitution always equals
A) the slope of the total product curve.
B) the ratio of the marginal products of inputs.
C) the change in output due to a change in the amount of one input.
D) the distance between two isoquants.
B
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"If the currency drain ratio increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 60 people employed; 20 people not in the labor force. How many people are unemployed?
A) 20 B) 40 C) 60 D) 80 E) 100
The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is $2.00 per pound
If a worker costs $800 per month, how many workers will Peter employ to maximize profit? A) zero B) one C) two D) four
The flaw of the original Keynesian model of the business cycle is that it
A) assumes away output fluctuations. B) assumes complete wage rigidity. C) assumes unrealistic fooling of workers. D) requires procyclical wage movements and continuous labor market equilibrium.