The line of perfect income equality is
A. X.
B. Y.
C. Z.
D. not shown on this graph.
C. Z.
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If the inputs to a production process are perfect complements, the firm can choose from a virtually infinite array of combinations of the two inputs to minimize the costs of producing a given level of output
Indicate whether the statement is true or false
From the Hotelling rule, we would expect that a perfectly competitive industry selling an exhaustible resource would
A) sell more of it than a monopolist would in each period. B) sell it all at once. C) sell less of it than a monopolist would in each period. D) not sell it. E) not sell it unless interest rates were low.
Which of the following policies would a Keynesian expect to produce the largest increase in income?
a. a reduction in government spending of $100 billion b. an increase in transfer payments of $100 billion c. an increase in government spending of $100 billion d. a tax cut of $100 billion
Suppose a government policy is put in place offering an additional six months of generous unemployment benefits for employees who are laid off. How would we expect this to impact the labor supply?