According to the real business cycle theory, ________ are responsible for economic growth.

Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises

(units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis)? A) Graph A B) Graph B C) Graph C D) Graph D

When one party suffers negative external effects due to the actions of another party, a lawsuit may not lead to the efficient outcome if:

A) property rights are not clearly assigned. B) the parties have incomplete information. C) the legal costs of the lawsuit are too high. D) All of the above