Which of the Following Statements About the Marginal Rate of Technical

question 5

Multiple Choice

Which of the following statements about the marginal rate of technical substitution is correct?

• A)The MRTS is equal to the ratio of the marginal productivities of the inputs.
• B)The MRTS is equal to the slope of the total product curve.
• C)The MRTS is zero in the long run.
• D)The MRTS is the rate at which one input can be substituted for the other in production while varying the level of output.

Recognize the primary gains from international trade for involved countries.

Analyze how production and trading possibilities curves imply efficiency and economic growth through specialization.

Calculate the total gains from specialization and trade based on comparative advantage using production possibilities data.

Understand how comparative cost differences between countries influence production specialization.

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Definitions:

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their belief in the effectiveness of their efforts, the value of the rewards for success, and the likelihood that their efforts will lead to expected outcomes.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Implicit Leadership

Refers to the concept that people have inherent beliefs and expectations about the attributes and behaviors that characterize effective leaders.

Implicit Leadership Perspective

A theory suggesting that people have ingrained beliefs and assumptions about the attributes and behaviors that make for effective leadership, which influence their responses to leadership actions.