If the Marginal Product of Labor Is 25 and the Marginal

question 89

Multiple Choice

If the marginal product of labor is 25 and the marginal product of capital 10,what is the marginal rate of technical substitution of labor for capital?

• A)0.6
• B)1
• C)1.5
• D)2.5

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Definitions:

U.S. Exports

Products and services created in the United States and exported to foreign nations.

International Tourism

Traveling to foreign countries for leisure, business or other purposes, which contributes to the economic and cultural exchange between nations.

Foreign Capital Inflow

The entry of capital from one country into another, where it is used to purchase assets or invest in business activities, often enhancing economic development.

Depreciation

The process by which capital assets lose value over time due to use, wear and tear, or obsolescence.