The figure above shows the production possibilities frontier for a country. If the country is producing at point D, then the
A) resources are being used efficiently.
B) technology associated with producing SUVs and compact cars is advancing.
C) resources are not being used efficiently and/or are unemployed.
D) production of SUVs and compact cars is maximized.
E) None of the above answers is correct because it is not possible to produce at point D.
C
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A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered
A) cyclically unemployment. B) frictionally unemployment. C) seasonally unemployment. D) structurally unemployment.
Which of the following would cause labor's share of national income to decrease?
A) labor productivity increases less rapidly than the real wage rate. B) labor productivity increases more rapidly than the real wage rate. C) labor productivity has increased at the same rate as the real wage rate. D) labor's share of national income is not affected by the relative growth rates of labor productivity and the real wage rate.