The slope of an isocost line determines the marginal rate of substitution
Indicate whether the statement is true or false
FALSE
You might also like to view...
If cyclical unemployment is negative, then
A) the actual unemployment rate is below the natural rate of unemployment. B) the natural rate of unemployment is getting smaller. C) there have been some errors in classifying the type of unemployment experienced by some people. D) structural unemployment must be increasing.
Which of the following statements is true about comparative advantage?
a. Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation. b. Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions. c. Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate. d. Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation. e. Only technologically advanced economies can have a comparative advantage in the production of a good or service.
Resources from nature that can be used to produce other goods and services are called:
A) money. B) natural resources. C) labor. D) capital.
Comparative advantage implies choosing the activity that
A. has the lowest opportunity cost. B. does not demand any specialization. C. is inside the production possibilities frontier. D. has a high opportunity cost.