When all of the available factors of production are being efficiently employed, the
A) economy is producing at a point within its PPF.
B) economy is producing at a point on its PPF.
C) economy is producing at a point beyond its PPF.
D) PPF disappears.
E) opportunity cost of changing production is infinite.
B
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Which labor market statistic tends rise during recessions and fall during expansions?
A) the unemployment rate B) the labor-force participation rate C) the employment-to-population ratio D) aggregate hours
The total amount of outstanding IOUs a nation is obligated to repay other nations and international organizations is called
a. current account b. balance of payments c. international trade d. international debt e. capital account
High marginal tax rates, such as those instituted during the Great Depression, will
a. increase the incentive of people to earn. b. lead to a proportional increase in tax revenue and a reduction in the size of the budget deficit. c. cause people to work, earn, and invest less than would be the case if marginal tax rates were lower. d. attract workers from other countries where tax rates are lower.
Which of the following statements about explicit costs is true?
A. They appear on the firm's balance sheet. B. They are the only costs that matter to business owners. C. They usually exceed implicit costs. D. They are difficult to measure.