Which of the following is (are) characteristics of an isocost curve?
A. The slope shows the rate at which the firm can substitute labor for capital while holding
B. total cost constant.
C. The slope shows the rate at which the firm can substitute labor for capital in the market.
D. If the price of capital is unchanged and the price of labor increases, the intercept of the isocost curve on the horizontal axis will decrease.
E. both a and c
F. all of the above
Answer: E
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a. adding the nominal interest rate and the inflation rate b. subtracting the nominal interest rate from the inflation rate c. adding last year's nominal interest rate to this year's d. subtracting the inflation rate from the nominal interest rate e. none of the above
Nominal gross domestic product (GDP) is measured in terms of the _____
a. current-year prices b. base-year prices c. export of goods and services d. amount of taxes collected e. hours of employment