If the cost of labor increases, the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
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A consumer expenditure survey reports the following information on entertainment spending: 20082009 PriceQuantityPriceQuantityMovies$75$87Concerts$302$352CDs$167$1510 Using 2008 as the base year, by how much does a "cost of entertainment" index increase between 2008 and 2009?
A. 13.4 percent B. 8.6 percent C. 3.9 percent D. 29.4 percent
On the graph above, if the economy is at point A when the real interest rate falls, the economy's new situation might be indicated by point ________
A) A B) B C) C D) D E) none of the above
Bank reserves will increase over time when:
a. the Fed sells government securities on the open market. b. the Treasury sells government securities on the open market. c. depositors take funds out of their checkable deposit accounts. d. the Fed buys government securities on the open market. e. the Fed lowers the discount rate.
Assuming a competitive world, does your country have a comparative advantage in making pizza? You can get your answer by
a. observing if your country makes more pizza than any other country b. comparing pizza prices in other countries c. calculating the opportunity cost of a pizza in your country d. comparing the opportunity cost of producing pizza in your country with the opportunity cost of producing pizza in other countries e. comparing your country's terms of trade to the terms of trade in other countries