It is difficult to know whether an economy is in or moving toward equilibrium because
a. an economy is always at rest, which is equilibrium
b. the economy only changes when it moves from one equilibrium level to another
c. our economy is always at full employment, which is regarded as an equilibrium position but changes in the rate of inflation at full employment suggest that it can surpass equilibrium
d. there is always increasing inflation coupled with low productivity growth
e. economic changes are continuous so that an equilibrium level is difficult, if not impossible, to identify
E
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An optimal decision is one that chooses the most desirable from among all possibilities that are available.
Answer the following statement true (T) or false (F)
The marginal tax rate is:
A. the difference between the total tax rate and the average tax rate. B. the percentage of total income paid as taxes. C. change in taxes/change in taxable income. D. total taxes/total taxable income.
A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits:
A. economies of scale at the current output level. B. diseconomies of scale at the current output level. C. a constant long-run average cost at the current output level. D. diminishing marginal returns at the current output level.
Refer to the data provided in Table 10.3 below to answer the following question(s).
Table 10.3 
Refer to Table 10.3. Marginal revenue product of the ________ worker is $480.
A. second B. third C. fourth D. fifth