To say that isoquants are convex is to say that
A) the marginal rate of technical substitution falls as labor increases.
B) capital and labor are perfect substitutes.
C) labor, but not capital, is subject to the law of diminishing marginal returns.
D) there are constant returns to scale.
A
Economics
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If a bushel of wheat costs $6.40 in the United States, costs 40 pesos in Mexico, and the nominal exchange rate is 10 pesos per dollar, then the real exchange rate is
a. 1.60 b. 1.25 c. .625 d. None of the above is correct.
Economics
Investors face the risk that the economy could go into another recession. This risk is:
A. Idiosyncratic B. Diversifiable C. Systemic D. Time preference
Economics