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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A welder loses his job because he has been replaced by a robot. He is only able to find another job at a lower skill level. The unemployment described here will most likely result in a _____ for the welder
a. loss of lifetime earnings b. loss of human capital c. deteriorating health condition d. loss of social cohesion
Pick the economic variable that is countercyclical
a. Government transfer payments b. Prices c. Consumption d. Nominal interest rates e. All of the above are countercyclical variables
A market situation in which there are a few firms that recognize their mutual interdependence is
A. monopoly. B. oligopoly. C. regulated monopoly. D. monopolistic competition.
Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by:
A. The government B. Domestic consumers C. Domestic producers D. Foreign exporters