A cutback in the space program due to a slow economy causes an increase in unemployment among aeronautical engineers. This is an example of

A direct restriction on the quantity of an import is called a(n):

A) quota. B) tariff. C) import subsidy. D) import restriction.

If labor is measured along the horizontal axis and capital is measured along the vertical axis, an increase in the wage rate will cause the isocost line to:

A. rotate clockwise, causing the firm to use less labor and more capital. B. rotate counterclockwise, causing the firm to use less labor and more capital. C. rotate clockwise, causing the firm to use less capital and more labor. D. rotate counterclockwise, causing the firm to use less capital and more labor.