If the economy is producing at point a on its production possibility frontier, then
A) all of the country's workers are employed.
B) all of the country's workers are specialized in one product.
C) all of the country's capital is used for one product.
D) all of its capital is used, but not efficiently.
E) all of the country's exports are produced in equal amounts.
A
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Which one of the following statements is MOST accurate?
A) In general, consumption demand rises by less than disposable income. B) In general, consumption demand rises by more than disposable income. C) In general, consumption demand rises by more than income. D) In general, consumption demand rises by the same amount as disposable income rises. E) In general, consumption demand rises are unrelated to disposable income rises.
Suppose Bella had entered into a contract to rent Michelle's apartment for one year. The contract mentioned that if either of the two parties breached it, the other was to recover her loss. If Michelle breaches the contract, a payment which leaves Bella no worse off than if the contract was honored, is called opportunistic damage
Indicate whether the statement is true or false
Nancy paid a tax of $0.50 on the last dollar she earned in 1999 . Nancy's marginal tax rate in 1999 was
a. more than 50 percent. b. exactly 50 percent. c. higher than her average tax rate. d. lower than her average tax rate.
Suppose the following: (1 ) the wage rate falls, (2 ) business taxes decline, (3 ) any change in SRAS is greater than any change in AD. Based on this information, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; rise C) fall; fall D) rise; fall E) none of the above