If the cost of capital increases the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only labor is employed in production.
D) shift inward in parallel fashion.
C
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Which of the following would shift the supply curve for smartphones to the right?
A) an increase in consumer income (assuming that all smartphones are normal goods) B) an increase in the price of a substitute in production C) a decrease in the price of an input used to produce smartphones D) a decrease in the number of firms that produce smartphones
One of the problems with the definition of economic growth is that
A) it overstates economic growth because it does not account for leisure time. B) it does not account for the distribution of income. C) it overstates economic growth because it does not account for the reduction in work time. D) it understates economic growth because it does not account for the reduction in work time.