A movement down along a given isoquant causes the marginal rate of technical substitution to:
A) increase.
B) stay the same.
C) decrease.
D) cannot be determined without additional information.
C
You might also like to view...
In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.
A. growth of domestic real GDP; growth of foreign real GDP B. inflation rate; unemployment rate C. real interest rate; exchange rate D. exchange rate; real interest rate
If the maturity of a debt instrument is less than one year, the debt is called
A) short-term. B) intermediate-term. C) long-term. D) prima-term.
Imposing a tax on a market typically hurts
A. buyers only. B. sellers only. C. buyers, sellers, and government agencies. D. both buyers and sellers.
If economic profits in an industry are zero and implicit costs are greater than zero, then:
A. Resources will move out of the industry B. There will be no production in the short run C. Accounting profits are greater than zero D. New firms will enter the industry