Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?
a. Dynamic technological know-how
b. Flexible resource quality
c. Fixed resource quantity
d. Full and efficient use of resources
e. Flexible money supply
d
Economics
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A shortage of kidneys (for transplants) results from
A) the legal price being set below the equilibrium price. B) the legal price being set above the equilibrium price. C) a price floor being set in the kidney market at P = $0, assuming the equilibrium price is greater than $0. D) a price ceiling being set in the kidney market at P = $0, assuming the equilibrium price is greater than $0. E) a and d
Economics
The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store.
| Name | Gender | Height | Minimum Wage |
|---|---|---|---|
| (Inches) | (Dollars per week) | ||
| Tim | M | 66 | $306 |
| Beth | F | 66 | $328 |
| Eleanor | F | 68 | $350 |
| Andrew | M | 70 | $361 |
| Darnell | M | 70 | $383 |
| Kyoko | F | 66 | $405 |
| Jacques | M | 71 | $427 |
| Sean | M | 70 | $449 |
| Musashi | M | 63 | $460 |
| Rina | F | 68 | $482 |
The lowest wage that the clothing store can pay to hire five sales clerks is
per week.
Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 67 inches in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by
per week.
Economics