Full-employment output is the level of output that firms in the economy supply when
A) taxes are zero.
B) wages and prices have fully adjusted.
C) the unemployment rate is zero.
D) all capital is fully utilized.
B
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Studies and experience suggest that labor and capital are highly complementary inputs to the production of pipe organs
Indicate whether the statement is true or false
____________________ is when a firm is able to produce along its expansion path
Fill in the blank(s) with the appropriate word(s).
Ceteris paribus which of the following is likely to cause an outward shift of the production possibilities curve?
A.) Investment in telecommunications networks. B.) The deportation of illegal immigrants. C.) An increase in the unemployment rate. D.) A tax increase on factors of production.
If the farmer is producing 5000 bushels of soybeans at point B in the figure above, we know that
A) the farmer is not using his resources efficiently. B) the farmer is using his land to produce a crop other than soybeans or corn. C) the farmer must be using more land than was used in constructing the production possibilities curve. D) the farmer is using his resources efficiently.