The term "bottleneck" refers to
a. when increasing amounts of variable inputs must share a fixed input.
b. "fixity" of some factor of production
c. None of the above
d. Both a and b
d
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Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased the supply of labor in the United States. Assume that the demand for labor in Mexico and the United States is unchanged
Then wages in the United States ________ and wages in Mexico ________. A) fall; rise B) rise; do not change C) rise; rise D) do not change; fall E) fall; fall
"Creating a free market for carbon-dioxide emission permits would only encourage firms to pollute more." Do you agree or disagree? Why?
What will be an ideal response?
President Obama is hoping to increase the federal minimum wage to $10.50 per hour. Use a diagram to illustrate the effect this increase would have on unskilled labor if:1) demand for labor is nearly vertical.2) demand for labor is very elastic 
What will be an ideal response?
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.