A point outside the production possibilities curve [PPC]:
a. represents inefficient use of resources.
b. represents the prevalence of unemployment.
c. is attainable if all resources are used efficiently.
d. represents more resources than are currently available.
e. will never be attainable, even if the quantity of resources increases.
d
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Other things constant, if there is an increase in the demand for goods now compared to goods in the future, we would expect that the
a. real interest rate would decline. b. capital investment rate would decline. c. current rate of saving would increase. d. real interest rate would rise.
The marginal product of labor is defined as:
A. the additional output produced by the last ?L units of labor hired. B. the amount of output divided by the amount of capital used to produce the output. C. the amount of output produced multiplied by the last ?L units of labor hired. D. the amount of output divided by the number of workers employed.
The most popular movie stars have high incomes for a number of reasons. One such reason is
a. an ability for almost everyone to enjoy movies at a relatively low cost. b. the above-average intellect of the average movie star. c. a compensating differential. d. a lack of technological advances in the movie industry.
The Law of Supply states that, other things being constant, when the price of a good increases then;
a) Supply and demand both decrease. b) Demand increases and supply decreases. c) The quantity demanded decreases. d) The quantity supplied increases.