The slope of the isocost line:
A) changes as the combination of labor and capital is altered by the firm.
B) is equal to the ratio of the marginal productivities at all points along the isocost line.
C) is equal to the negative of the ratio of the prices of the outputs.
D) is equal to the negative of the ratio of the prices of the inputs.
D
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The traditional Keynesian approach concludes that an increase in government spending
A) generates a greater increase in investment spending. B) generates a greater increase in total spending because consumption spending increases as incomes increase. C) has no effect on total spending because consumers increase saving by an equal amount. D) generates an equal increase in total spending because government spending makes up part of total spending.
A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff