A Measure of How Quickly the Marginal Rate of Technical

question 57

Multiple Choice

A measure of how quickly the marginal rate of technical substitution of labor for capital changes as we move along an isoquant is the:

• A)capital-labor ratio
• B)elasticity of substitution
• C)input substitution possibility frontier
• D)rate of technological progress

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Definitions:

Double-Declining-Balance Depreciation

A method of accelerated depreciation in which an asset's book value is reduced at double the rate of its straight-line depreciation.

Retrospective Approach

The retrospective approach in accounting involves restating past financial statements as if a new accounting policy had been in effect in those periods, to provide consistency in financial reporting.

Depreciation Rate

The percentage or method used annually to allocate the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Salvage Value

The estimated residual value of an asset after the asset has reached the end of its useful life.