When the isocost line is tangent to the isoquant, then
A) MRTS = -w/r.
B) the firm is producing that level of output at minimum cost.
C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor.
D) All of the above.
D
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The central bank is said to monetize the deficit when it
a. prints Federal Reserve notes to satisfy the increased demand for money. b. sells government bonds from its own portfolio of government securities. c. requires member banks to buy the bonds to finance the deficit. d. purchases the bonds that the government issues.
Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is
A. inelastic. B. perfectly inelastic. C. unit elastic. D. elastic.
Use the above table and assume a fixed cost of $200. At an output of 4, ATC is
A. $200.
B. $225.
C. $250.
D. $400.
The balance of payments is
A. the value of merchandise goods bought and sold in the world market. B. the value of goods and services bought and sold in the world market. C. a summary record of a country's economic transactions with foreign residents and governments. D. a summary record of a country's purchases and sales of goods and services in the world market.