An economy may be operating at a point inside the production possibilities curve if:
a. technological progress enables the economy to produce quantities of output otherwise unattainable.
b. a substantial amount of labor is unemployed
c. a substantial amount of machinery is idle.
d. either b. or c. occur.
d
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In the figure above, the tax wedge is equal ________ per hour, the after-tax real wage rate is equal to ________, and the before-tax real wage rate is equal to ________
A) $20; $30; $35 B) $15; $20; $35 C) $20; $30; $20 D) $10; $30; $30 E) $30; $20; $35
In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP
a. Keynesian, supply b. Classical, demand c. Intermediate, demand d. Intermediate, supply
The marginal productivity principle demonstrates that distribution under a capitalist system is ethically valid
a. True b. False Indicate whether the statement is true or false
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, Larry's opportunity cost of selling a truck is selling:
A. 2 cars. B. 1 car. C. 10 cars. D. 1/2 of a car.