The Marginal Rate of Technical Substitution

question 7

Multiple Choice

The marginal rate of technical substitution:

• A)equals the marginal product of capital times the marginal product of labor.
• B)measures the rate at which marginal product declines as inputs are increased.
• C)measures the degree to which one input can be substituted for another,output held constant.
• D)is the horizontal distance between two isoquants.

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Definitions:

Social Entrepreneurship

An approach to business that seeks to solve social issues or challenges while operating sustainably and generating revenue.

Economic Goals

Targets or objectives related to the financial health and economic policies of a nation, organization, or individual.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, workplace safety, and other employment terms.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.