Refer to Figure 11-12. The movement from isoquant T to isoquant U depicts
A) an increase in the cost of production.
B) an increase in output.
C) an increase in labor usage holding capital and output constant.
D) a change in preferences with regards to input usage.
B
Economics
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Total surplus is defined as
A) consumer surplus + producer surplus. B) consumer surplus - producer surplus. C) another word for profit. D) another word for total revenue.
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According to real business cycle theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
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