Which statement is true?
A. On the production possibilities frontier there is zero unemployment.
B. On the production possibilities frontier 95 percent of the labor force is employed.
C. To get out of a recession, we must produce at some point beyond our production possibilities frontier.
D. To have economic growth, we must push the production possibilities frontier inward.
B. On the production possibilities frontier 95 percent of the labor force is employed.
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For certain public projects such as building a dam on a river or a bridge to an island, what procedure is a government likely to use to determine what quantity of a public good should be supplied?
A) It hires economists to estimate the market demand for the product. B) It evaluates the costs and benefits of producing the good. C) It takes a vote in Congress. D) It conducts public surveys to determine if consumers want the product.
Which statement is false?
A. The substitution effect means that you trade away leisure time for more money. B. The income effect means that you trade away some money for more leisure time. C. Both statements are true.
Under a negative income tax program,
A. the government guarantees a minimum level of family income. B. a family must pay income taxes on its welfare check. C. a family receives a stated amount of money from the government plus its members can keep all income earned through work. D. the government reduces the welfare payment by any income earned through work.
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. Diminishing marginal utility for sandwiches sets in after the ____ sandwich.
A. first B. second C. third D. fourth