A fixed-proportion production function has isoquants that are
a. almost flat (i.e., the isoquants are almost straight lines).
b. L-shaped.
c. normally shaped (rectangular hyperbolas).
d. None of the above.
b
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The Laffer curve is based on the idea that if the tax rate is sufficiently high, then raising it even more will actually reduce total tax revenues. According to Laffer, this happens because the growing tax rates reduce economic activity at an even faster rate
a. True b. False Indicate whether the statement is true or false
Inflation ________ the signals sent by price changes to demanders and suppliers of goods and services.
A. obscures B. amplifies C. enhances D. has no impact on
Many economists argue that real GDP is
A. not a good measure of economic well-being because it excludes increases in leisure time. B. a good measure of economic well-being because it includes changes in personal safety. C. a good measure of economic well-being because it includes increases in leisure time. D. not a good measure of economic well-being because it overvalues increases in leisure time.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line could shift from CD to CE if the
A. price of labor increased. B. price of labor decreased by 50%. C. firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%. D. firm's total expenditures increased by 50%.