Which of the following are characteristics of a typical isoquant?
A. All input combinations on the isoquant will produce the same level of output.
B. The marginal rate of technical substitution decreases as more labor is substituted for less capital.
C. A change in input prices shifts the isoquant map.
D. both a and b
E. none of the above
Answer: D
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A group of legislators agree to vote for a package of otherwise unrelated laws that they individually favor. Which term describes this activity?
a. Pork-barrel spending b. Logrolling c. Political correctness d. Lobbying
The assumption of ceteris paribus holds well in the real world
a. True b. False Indicate whether the statement is true or false
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired reserve/deposit ratio is 10 percent. If the Central Bank prints an additional 200 econs and uses this new currency to buy government bonds from the public, the money supply in Macroland will increase from ________ econs to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A. 5,000; 2,000 B. 3,000; 5,000 C. 5,000; 7,000 D. 20,000; 22,000
The debt ceiling is: a. a limit on the total amount of money the Fed can borrow from the government
b. the minimum amount of money the Fed can borrow from other commercial banks. c. a limit on the total amount of money the federal government can legally borrow. d. the maximum amount of money the state governments are allowed to use for public outlays. e. the maximum amount of money the state governments can borrow from the Fed.