Ceteris paribus, if structural unemployment increases, the economy is
A. Outside the production possibilities curve.
B. On the fixed production possibilities curve.
C. On the production possibilities curve that shifts inward.
D. Inside the production possibilities curve.
Answer: C
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As a result of advances in technology, cellular telephones have become cheaper to produce. Illustrate the effect of this change on the market for cellular telephones
What will be an ideal response?
If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently
A) more resources should be used to produce computers. B) fewer resources should be used to produce computers. C) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers. D) None of the above is correct because marginal benefit and marginal cost have nothing to do with using resources allocatively efficiently.
A multinational corporation sells its goods in many countries but manufactures them in only one
Indicate whether the statement is true or false
State and local governments
a. use a mix of taxes and fees to generate revenue. b. are required by federal mandate to levy income taxes. c. are required to tax property at a standard rate set by the federal government. d. must tax wages more heavily than interest and dividend income.