The MFC curve
A) lies below the labor supply curve, when the labor supply curve is upward sloping.
B) lies above the labor supply curve, when the labor supply curve is upward sloping.
C) is the labor supply curve.
D) is parallel to the labor supply curve, when the labor supply curve is downward sloping.
Answer: B
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Of the following high-income countries, which has the highest male life expectancy at age 65?
A) Canada B) Japan C) the United Kingdom D) the United States
What is the key proposition of new growth theory that makes economic growth persist?
What will be an ideal response?
Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing:
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
If resource suppliers and demanders find out that the actual price level exceeds the expected price level, they will take corrective actions that will: a. cause the economy to move away from the potential output level
b. raise the unemployment level above the natural rate of unemployment. c. shift the aggregate demand curve of an economy. d. shift the short-run aggregate supply curve of an economy. e. lower the actual price level.