Isoquants Are Usually Drawn Convex When Viewed from the Origin,reflecting

question 41

Multiple Choice

Isoquants are usually drawn convex when viewed from the origin,reflecting the standard assumption

• A)that both factors are subject to the law of diminishing returns.
• B)negative marginal productivity of all factors.
• C)the positive marginal productivity of all factors.
• D)that the variable factor is subject to the law of diminishing returns.
• E)that both factors are subject to increasing returns.

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Definitions:

Real Value

The worth of a good or service adjusted for inflation, showing its true purchasing power.

Output

The amount of goods or services produced by a company, country, or economic system within a certain period.

Inflation Tax

An implicit tax that results from the erosion of purchasing power due to inflation, effectively reducing the real value of money held by the public.

U.S. Government Revenue

The total income received by the government from taxes and non-tax sources like tariffs, fees, and government-owned enterprises income.