______ identifies all of the input combinations that efficiently produce a given amount of output.
A. A production function
B. An efficient production frontier
C. A production possibilities curve
D. An isoquant
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Which function of money eliminates the need for multiple prices for each good as in a barter system?
A) store of value B) standard of deferred payment C) unit of account D) valuable relative to its weight
People combining the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is consistent with
A) frictional unemployment. B) the rational expectations hypothesis. C) active policy making. D) passive policy making.
Relative to a mobile factor of production, economic theory suggests that the price elasticity of supply for a highly immobile factor of production (for example, land) will be
a. more elastic. b. less elastic. c. of unitary elasticity. d. this is a trick question; the price elasticity of supply for factors of production is not affected by factor mobility.
Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savings account, which was earning 3% interest, and borrowed an additional $4,000 from the bank at an interest rate of 7%. What is Gwen's annual opportunity cost of the financial capital that has been invested in the business?
a. $60 b. $280 c. $340 d. $660