If all factors of production that are available for use under current market conditions are being utilized, then the economy has:
A) economic growth.
B) comparative advantage.
C) full employment.
D) inefficient production.
Ans: C) full employment.
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If Sally maximizes her total utility by allocating time between two different activities, she will select the combination at which the marginal utility per hour spent is the same in both activities
a. True b. False
A binding price floor is presented graphically as a(n):
a. price at equilibrium. b. price below equilibrium. c. price above equilibrium. d. inefficiently high quality of the good provided
An increase in government spending will shift the aggregate demand curve to the left.
Answer the following statement true (T) or false (F)
Which of the following is an effect of a minimum wage law that establishes a wage floor above the current market clearing wage?
A) surplus labor, or unemployment B) a decrease in the market clearing wage C) a decrease in the quantity of labor supplied D) an increase in the quantity of labor supplied