With Capital on the Vertical Axis and Labor on the Horizontal

question 59

Multiple Choice

With capital on the vertical axis and labor on the horizontal axis,vertical isoquants imply that

• A) capital and labor are perfect substitutes.
• B) capital and labor must be used together in a certain proportion.
• C) capital is not productive.
• D) labor is not productive.

---

Definitions:

Fixture Filing

Fixture filing is a legal claim on personal property that has been attached or fixed to real estate in a manner that it is considered part of the real property.

Mechanic's Lien

A legal claim against a property for unpaid construction work or supplies, giving the contractor a right to secure payment.

Perfected Security Interest

A legal state where a creditor has taken all necessary steps required by law to enforce a security interest against the debtor's collateral in case of default.

Purchase Money Security Interest

A legal claim or lien on collateral that secures payment of the debt used to buy the collateral, often applied in context with the sale of personal property.