If the Quantity of Good a Is on the Vertical

question 2

Multiple Choice

If the quantity of good A is on the vertical axis and the quantity of good B is on the horizontal axis, the marginal rate of technical substitution of the corresponding isoquant line is the:

• A)marginal product of good B divided by the marginal product of good A.
• B)negative of the marginal product of good B divided by the marginal product of good A.
• C)marginal product of good A divided by the marginal product of good B.
• D)negative of the marginal product of good A divided by the marginal product of good B.

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Definitions:

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a business's investment in depreciable properties, allowing for the asset's cost to be written off over its useful life.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax is owed to the government in a given tax year.

Fixed Assets

Assets of a long-lasting nature involved in business operations, which are not anticipated to be expended or turned into cash quickly.

Current Assets

Items of value that are projected to be turned into cash, sold off, or consumed either within a year or throughout the length of the business's normal operational cycle, whichever timeframe is greater.