A construction company builds roads with machinery (capital, K) and labor (L)
If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use. A) labor, capital
B) capital, labor
C) concrete, gravel
D) none of the above
A
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Unemployment that arises when there is a mismatch between the quantity of labor demanded and supplied is referred to as:
A) structural unemployment. B) disguised unemployment. C) frictional unemployment. D) cyclical unemployment.
Madison, the CPA, is faster than Mason, the house painter, at both accounting services and painting. This means that:
A. there is no reason for them to trade services. B. Madison should trade her accounting services for Mason's painting services, so long as Madison is relatively more efficient at accounting services. C. Madison should trade her accounting services for Mason's painting services, so long as Madison is relatively more efficient at painting. D. Madison has the comparative advantage in both services.