The set of all baskets of inputs that can be employed at a given cost defines a(n)
a. isoquant curve.
b. isocost curve.
c. expansion path.
d. production function exhibiting constant returns to scale.
b. isocost curve.
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Suppose a country increases trade restrictions. This country would be pursing an
a. inward policy, which most economists believe has beneficial effects on the economy. b. inward policy, which most economists believe has adverse effects on the economy. c. outward policy, which most economists believe has beneficial effects on the economy. d. outward policy, which most economists believe has adverse effects on the economy.
The optimal level of output may be defined as that level of output where:
a. the marginal benefit of the last unit purchased equals its marginal cost. b. total benefit equals total cost. c. it is impossible to define optimal in any meaningful way. d. average benefit exceeds average cost by the greatest amount. e. marginal benefit exceeds marginal cost by the greatest amount.
The government would use production taxes to remedy the problem of substantial:
A. external costs of consumption. B. external benefits of production. C. external costs of production. D. external benefits of consumption
A price index:
A. measures how much the cost of a market basket has risen or fallen relative to the cost in a base time period. B. summarizes the changes in the cost of living for only rural consumers. C. allows us to see clearly the changes in the cost of a market basket daily. D. is generally only used with consumer goods and services