As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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Periodic payments of net earnings to shareholders are known as
A) capital gains. B) dividends. C) profits. D) interest.
For this question, assume that workers expectations of the price level and productivity are accurate. Now suppose that the economy experiences an increase in productivity. Which of the following will occur in the medium run?
A) no change in unemployment B) an increase in unemployment C) a reduction in unemployment D) no change in the natural level of output if the unemployment rate does not change E) none of the above
In an increasing-cost industry, an increase in output will lead to
A) an downward shift in the ATC curve. B) an downward shift in the MC curve. C) a reduction in long-run per-unit costs. D) an increase in long-run per-unit costs.
The wage rate found by the intersection of the market demand and supply curves for labor then determines the
A. labor's supply curve of labor. B. firm's supply curve for labor. C. labor's demand curve for jobs. D. firm's demand curve for labor.