Any point inside the production possibilities frontier is called
A) full employment.
B) unemployment.
C) efficient.
D) unobtainable.
B
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In reality, the wage-gap between two countries will:
A. Always be reduced to zero through migration B. Be greater than zero because of migration costs C. Always be sufficient to cover the marginal costs of migration D. Be smaller the greater the distance between the countries
A Nash equilibrium occurs when:
a. a unilateral move by a participant makes him better off. b. one can deviate from the equilibrium and improve the outcome. c. no one can move from the equilibrium and improve the outcome. d. participants have an incentive to deviate from the equilibrium. e. no one is better off.
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 120 units of labor, how much output does it produce?
A. 7,500 units B. 7,000 units C. 70 units D. 8,400 units E. 9,200 units
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. raise the price consumers pay from $25 to $30. B. lower the price sellers keep after paying the tax from $25 to $20. C. lower the price consumers pay from $25 to $15. D. raise the price sellers keep after paying the tax from $25 to $30.