What does a production possibilities curve (PPC) show? What is the difference between a PPC that is linear and a PPC that is curved away from the origin?
What will be an ideal response?
A production possibilities curve shows the relationship between the maximum production of one good for given a level of production of another good. The slope of the production possibilities curve shows how much of one good needs to be given up to produce an extra unit of the other good or, in other words, the opportunity cost of producing an extra unit of one good in terms of the other good. A linear PPC would show constant opportunity costs while a PPC that is curved away from the origin would show increasing opportunity costs.
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For a monopsonist
a. wage rate > TLC b. wage rate > MLC c. wage rate = MLC d. wage rate = MRP e. wage rate < MLC
When the Social Security system begins running a deficit, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from
a. higher taxes, spending reductions in other programs, or additional government borrowing. b. the surplus funds deposited in governmental banking accounts. c. equity capital being liquidated. d. the sale of private equities and securities that the government has been purchasing with the funds.
About what proportion of the variation of wages across workers is explained by factors that can be measured? What are the other factors that explain wage differences but are difficult to measure?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C