Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier. The MRT is 2 at the current point of production
If the amount of milk produced is reduced by two units in order to produce one more unit of honey, then: A) the new point of production lies above the production possibilities frontier.
B) the new point of production lies on the production possibilities frontier.
C) the new point of production lies below the production possibilities frontier.
D) we cannot determine where the new point of production lies relative to the production possibilities frontier.
C
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Which of the following statements is true?
A) Job search refers to the activities that workers undertake to find appropriate jobs. B) It is easier to find full-time suitable employment than to find seasonal part-time employment. C) In a competitive market, workers who demand a wage higher than the equilibrium wage rate are likely to get employed faster. D) Job search is normally a month-long process.
"Given that most people like to get ‘free stuff,' it follows that goods that are available free of charge are produced and consumed in the proper amounts in a market economy.". What is wrong with this statement?
Officially, the payroll tax is referred to as
A. the trust fund tax. B. Social Security tax. C. contributions for social insurance. D. investment in Social Security.
The economy is growing if and only if
A. real GDP is rising. B. GDP is rising. C. the average price level is rising. D. GDP per capita is rising.