If the isoquants are straight lines, then
A) inputs have fixed costs at all use rates.
B) the marginal rate of technical substitution of inputs is constant.
C) only one combination of inputs is possible.
D) there are constant returns to scale.
B
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"Crowding out" will ____ expansionary fiscal policy because it results in ____
a. weaken; a depreciated value of the dollar b. strengthen; reduced imports c. weaken; increased interest rates d. strengthen; increased tax revenues
Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces the market demand curve. B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve. C) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve. D) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve.