A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production.
B) that the trade-off between the 2 goods is not constant.
C) changing technology.
D) only 1 good is always being produced.
B
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A graph shows the wage rate of factory workers. The slope of the line is positive for periods when the wage rate is
A) low and falling. B) high and not changing. C) rising. D) high and falling. E) falling.
If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then
A) the walkie-talkie supply curve will shift to the right. B) the supply of walkie-talkies is elastic. C) the supply of walkie-talkies is inelastic. D) the walkie-talkie supply curve will shift to the left.
Suppose the labor market is perfectly competitive, but the output market is not. When the labor market is in equilibrium, the wage rate will:
A) be less than price times the marginal product of labor. B) equal price times the marginal product of labor. C) be greater than price times the marginal product of labor. D) None of the above is necessarily correct.
Suppose you read in the Wall Street Journal that actual investment in Canada in 2003 was less than the intended investment Canadian businesses had hoped to make. You would conclude that in 2003, the level of inventories in Canada was
a. less than desired and that Canadian output rose b. less than desired and that Canadian output fell c. greater than desired and that Canadian output rose d. greater than desired and that Canadian output fell e. greater than desired but would be unable to tell what effect it had on Canadian output