If a country is currently producing inside its production possibilities curve
A. it can increase the production of both goods by putting unemployed resources to work.
B. it is experiencing efficient production of one good but not the other.
C. it can increase the production of one of the goods only if it reduces the production of the other good.
D. None of these are correct.
Answer: A
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Price floors typically improve market efficiency
a. True b. False Indicate whether the statement is true or false
Bob Diener, an attorney working for the FBI in Santa Fe, earns $50,000 annually. Congress has imposed a 20 percent income tax. Assume Bob has an MPC of 0.8 . How much less will Bob consume than if no tax had been levied?
a. $12,000 b. $10,000 c. $8,000 d. $4,000 e. $2,000
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