Refer to the diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve:

What does empirical evidence suggest about the elasticity of labor supply? What does this suggest about the burden of the payroll tax in the United States?

What will be an ideal response?

Suppose an economy of five people has a national income of $100,000 . and each individual earns $20,000 . The Gini coefficient for this economy is

a. one b. zero c. between 1.0 and 0.5 d. between 0 and 0.5 e. not enough information is given