If an economy is operating on its production possibility frontier, which of the following statements is true?
A. Products are produced using inefficient production technology.
B. The capacity utilization rate is less than full production.
C. The economy's labor force is fully employed.
D. A fall in the price of an input will enable the economy to produce outside the production possibility frontier.
C. The economy's labor force is fully employed.
You might also like to view...
Suppose the marginal product of labor is MPN = 200 - 0.5Nwhere N is aggregate employment. The aggregate quantity of labor supplied is 300 + 8w, where w is the real wage. What is the equilibrium real wage?
A. 5 B. 20 C. 10 D. 15
When the economy is operating at its natural rate of unemployment, the frictional and structural unemployment rates must add up to zero
Indicate whether the statement is true or false
Economic profit of a decision in question equals
A. accounting profit of the decision in question + its opportunity cost. B. accounting profit of the decision in question ? accounting profit of the best available alternative. C. accounting profit of the decision in question + its opportunity cost + overheads. D. its opportunity cost + accounting profit of the best available alternative.
Explain what the term structure of interest rates represents
What will be an ideal response?