The production possibilities frontier shows the feasible combinations of production without waste.
Answer the following statement true (T) or false (F)
True
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To maximize profits, firms hire labor as long as
A) each additional hour hired produces more additional output than the real wage rate. B) the total hours hired produces more additional output than the real wage rate. C) each additional hour hired produces more additional output than the nominal wage rate. D) the quantity of labor supplied increases as the real wage rate increases. E) workers continue to supply labor to the firm.
Refer to the figure above. What is the consumer surplus in the market?
A) $60 B) $90 C) $120 D) $160
The relationship between consumption and income is the
a. spending function b. consumption function c. autonomous consumption d. household consumer spending e. household spending function
Assume that a capital-abundant country trades only two goods with the rest of the world, medical equipment and corn. Medical equipment is relatively capital-intensive. According to the Rybczynski theorem, with the relative price of the goods remaining unchanged, an increase in the country's endowment of capital will cause the output of medical equipment to ________ and the output of corn to
A. fall; rise. B. rise; remain the same. C. rise; fall. D. remain the same; fall.