Isoquants that are downward-sloping straight lines exhibit
A) an increasing marginal rate of technical substitution.
B) a decreasing marginal rate of technical substitution.
C) a constant marginal rate of technical substitution.
D) a marginal rate of technical substitution that cannot be determined.
C
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Which of the following is NOT a reason why the United States did NOT sign the Kyoto Protocol?
a. We still do not understand all the consequences of policy actions that affect global warming. b. Meeting the Kyoto targets would negatively affect the U.S. economy. c. Kyoto failed to include the developing countries, especially China and India. d. There was not enough cash incentive being provided to the United States to sign the protocol.
Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important.
What will be an ideal response?