Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)?
a. oil and natural gas
b. sugar and high fructose corn syrup
c. computers and clerks
d. keyboards and computers
Which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?
a. trucks and truck drivers
b. natural gas and oil
c. personal computers and clerical workers
d company employed computer programmers and temporary supplemental computer programmers
Answer 1: Computer and Clerks
This is the answer because they represent substitutable inputs in production. A company can either hire more clerks to do a job or can buy more computers to do the same job. As quantity of one decreases, it ...
The solution provides excellent answer to the multiple choice questions below below.
Short answer questions in economics: economics, market economy, command economy,supply and demand
Questions (also attached):
1) What is economics?
2) What types of things are considered in economics? What is not?
3) What role does economics play in your personal decisions?
4) What are the advantages of a market versus a command economy?
1. What is the difference between the shift of and a movement along the demand curve?
2. What is the difference between the shift of and a movement along the supply curve?
3. How do shortages and surpluses develop?
4. What types of shortages and surpluses affect you either personally or in your work environment?
2. Answer the following questions:
a. What causes the changes in supply and demand?
b. How do shifts in supply and demand affect your decision making?
c. List four key points in the study of economics.