One effect of market intervention is resource misallocation.
Answer the following statement true (T) or false (F)
True
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Consider the production possibilities frontier displayed in the figure shown. A society faced with this curve currently:
A. cannot obtain point B.
B. can only obtain point C.
C. can only obtain point D or point A.
D. cannot obtain point C.
Under a target price system, the government can adjust the deficiency payment paid to a farmer by deciding to pay some percentage of the difference between the target price and the market price.Indicate whether the statement is true or false
High-wage workers are
A. more likely than low-wage workers to supply more labor when the wage rate rises. B. about as likely as low-wage workers to supply more labor when the wage rate rises. C. less likely than low-wage workers to supply more labor when the wage rate rises. D. about as likely as low-wages workers to supply less labor when the wage rate rises.
Which of the following will NOT shift an economy's production possibilities curve outward?
A. an increase in technology B. an improvement in the literacy rate C. a reduction in the unemployment rate D. an increase in the number of workers available