A production possibilities curve with quantities of clothing and food on the axes shows which of the following?I.A society cannot have an unlimited amount of each good.II.For an efficient society, an increase in clothing production will necessitate a decrease in food production.III.A society will always produce the maximum amount of both clothing and food.
A. I only
B. II only
C. III only
D. Both I and II
Answer: D
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If the minimum wage is set above the equilibrium wage, after taking into account the resources lost in job search, the firms' surplus ________ and the workers' surplus ________
A) increases; increases B) increases; decreases. C) decreases; increases D) decreases; decreases E) does not change; decreases
If the price level rises but the money wage rate does not, then firms will hire ________ labor and the quantity of real GDP supplied will ________
A) more; increase B) the same amount of; not change C) less; decrease D) more; not change E) less; increase
Amount of a good or service that buyers are willing and able to purchase at the current price
What will be an ideal response?
Which of the following would contribute to a U.S. balance of payments surplus?
A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on U.S. military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.