What can we say about the employment of resources if the economy is at a point on its production possibility frontier?
What will be an ideal response?
If the economy is at a point on its production possibility frontier, this implies that there is full resource employment and productive efficiency.
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John Maynard Keynes noted that
A. we could print all the money we want and still have scarcity. B. "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort." C. the general notion that scarcity is due to not having enough money is an illusion. D. we could print all the money we want and still have scarcity AND the general notion that scarcity is due to not having enough money is an illusion.
If marginal utility is positive, then as consumption increases:
A. the demand curve will have a positive slope. B. total utility will not change. C. total utility will increase. D. the consumer will not experience diminishing marginal utility.
The IS curve shifts to the left when
A) taxes increase. B) government spending increases. C) the money supply increases. D) autonomous planned investment spending increases.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, Robin Smith is probably going to negotiate a salary of ________ per week, ________ of which is economic rent.
A. $500, $500 B. $400, $0 C. $475, $75 D. $500, $100