The slope of a country's production possibility frontier is equal to ________ and the optimal production point is located where the slope is equal to ________

Assume that output of good Y is measured on the vertical axis, output of good X is measured on the horizontal axis, MPL is the marginal product of labor with a subscript indicating which good, P is the price of a good, and w is the wage rate. A) -MPLY/MPLX; -PX/PY
B) -PX/PY; -MPLY/MPLX;
C) -PX/w; -PY/w
D) -MPLY/w; -MPLF/w
E) -MPLX/MPLY; -PX/PY


A

Economics

You might also like to view...

The market-clearing curve for substitutes is:

A. horizontal. B. downward-sloping. C. vertical. D. upward-sloping.

Economics

The aggregate supply curve shows the relationship between the:

a. The Consumer Price Index and the level of output. b. Real risk-free interest rate and expected inflation. c. The nation's average price level (i.e., the implicit price index) and the level of output. d. Nominal exchange rate and level of output. e. None of the above.

Economics

Compute the tax rates for the three taxpayers shown in Table 33.1. Then use the table to answer the indicated question.TaxpayerIncome (Dollars)Taxable Income (Dollars)Taxes Paid (Dollars)Effective Tax Rate(Percent)Nominal Tax Rate(Percent)1$200,000$100,000$6,000________%________%2100,00080,0008,000________%________%360,00048,00012,000________%________%In Table 33.1, the effective tax rate for taxpayer 3 is

A. 20.0 percent. B. 5.0 percent. C. 25.0 percent. D. 8.0 percent.

Economics

By definition, a government-sponsored good

A) is a good that is deemed socially desirable. B) is a good that should be available only to upper-income groups. C) is always provided at a zero price. D) does not affect society's general welfare.

Economics