The rate of product transformation refers to
a. how a consumer can trade one good for another while still maximizing his or her utility.
b. how a firm can substitute one input for another and still maintain the same production level.
c. how production of one good can be substituted for another while still using a fixed supply of inputs efficiently.
d. how quickly a firm can produce a final good while starting with only natural resources.
c
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According to the theory of rational expectations, the government can influence output
a. with appropriate fiscal and monetary policy. b. in the short run, but not in the long run. c. without affecting the price level. d. only by making unexpected changes in aggregate demand.
When the Swiss franc appreciates relative to the dollar
A. it becomes less expensive in terms of the dollar. B. it takes fewer dollars to buy a Swiss franc. C. it takes more dollars to buy a Swiss franc. D. None of these statements are true.