Suppose the price of capital and labor remain constant. As a firm\'s expenditure

Question

Suppose the price of capital and labor remain constant. As a firm's expenditures for capital and labor increase, its isocost line shifts out parallel to the original isocost line. shifts in parallel to the original isocost line. rotates outward on the Y-intercept. rotates outward on the X-intercept. Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in China retaliating by raising tariffs on some U.S. exports. China halting the sale of all products in the United States. U.S. firms never being able to meet the demand for U.S. produced tires. the government demanding price cuts from U.S. tire manufacturers. Economists assume that the goal of consamers is to do as little work as possible to survive. make themselves as well off as possible. expend all their income. consume as much as possible. In order t avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints. With voluntary export restraints, foreign producers agree to meet specific quality standards required by the importing country. limit their exports to a country. pay a tax on all products they export. must agree to import an equal quantity of products that they export. A budget constraint represents the bundles of consumption that make a consumer equally happy. refers to the limited amount of income available to consumers to spend on good and services. reflects the desire by consumers to increase their income. shows the prices that a consumer chooses to pay for products he consumes. Improvements in inventory control represent a positive technological change because they allow firms to produce the same output with fewer inputs. In recent years, many firms have adopted an inventory system in which firms accept shipments from suppliers as close as possible to the time they will be needed. Wal-Mart has been a pioneer in using inventory control systems to this in is stores. This type of inventory system is called a inventory system. first-in-first-out

Explanation / Answer

(13) Isocost shifts out, parallel to original isocost

(14) US tariff on Chinese tires will result in China retaliating by import tariff on some US exports.

(15) Goals of consumers is to make themselves as better off as possible.

(16) With VER, foreign producers limit their exports to a country.

(17) Budget constraint refers to limited amount of income to spend on goods & services.

(18) Just in time (JIT).

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