In economic terms associated with employment and unemployment, what would cause an economy to operate inside its production possibilities curve? What would have to change to move it to a point on its production possibilities curve?
Unemployment or underemployment would keep an economy from operating on its production possibilities curve. As the economy reduces its unemployment rate and gets rid of all underemployment, it will move toward full employment and will move to a point on the production possibilities curve.
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In perfectly competitive markets with identical firms, the burden of a tax is shared by consumers and producers in the short run so long as market demand is not perfectly elastic.
Answer the following statement true (T) or false (F)
Which statement is true?
A. No one receiving public assistance is employed. B. Some people receiving public assistance are employed. C. More people were receiving public assistance in 2007 than in 1994. D. According to current law, no one will be eligible to receive public assistance by the end of 2012.
Figure 18-2
Figure 18-2 shows the widget market before and after an excise tax is imposed. The revenue collected by the tax is ____.
A. $8,000 B. $50,000 C. $100,000 D. $150,000
Assume that the price overestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing ________ the socially efficient amount of flu vaccine.
A. more than B. less than C. exactly D. sometimes more than and sometimes less than