A firm's isoquant shows
a. the amount of labor needed to produce a given level of output with capital held constant.
b. the amount of capital needed to produce a given level of output with labor held constant.
c. the various combinations of capital and labor that will produce a given amount of output.
d. None of the above.
c
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The profits of a partnership are
A) taxed as personal income. B) subject to a corporate tax. C) taxed as capital gains indexed for inflation. D) exempt from taxation.
Who owns the Fed?
a. the federal government b. the 50 state governments c. the District Federal Reserve Banks d. it has no ownership, which is why it is called independent e. member banks
Over the past few decades, nominal interest rates have been higher than real rates of interest. This means that
a. lenders must have expected inflation. b. borrowers must have expected deflation. c. lenders must have expected prices to fall. d. borrowers must have expected prices to fall.
Firms maximize their profits by producing the output level where MR = MC.
Answer the following statement true (T) or false (F)