Which of the Following Relations Is the Slope Along a Given

question 167

Multiple Choice

Which of the following relations is the slope along a given isoquant?

• A) dQ = {  F(K, L)/  K} dK + {  F(K, L)/  L} dL, where dQ > 0
• B) 0 = {  F(K, L)/  L} dK + {  F(K, L)/  K} dL
• C) 0 = {  F(K, L)/  K} dK + {  F(K, L)/  L} dL
• D) dQ = {  F(K, L)/  K} dL + {  F(K, L)/  L} dK, where dQ > 0

---

Definitions:

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and safety concerns of public and private actions.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.

Negative Externalities

Unintended adverse effects of an economic activity on unrelated third parties; they represent a failure of the market to fully account for the impacts of transactions.

Social Planner

A hypothetical figure in economic theories who makes decisions designed to allocate resources efficiently and achieve social welfare objectives.