Other things equal, which of the following would shift an economy's production possibilities curve to the left?
A. The discovery of a low-cost means of generating and storing solar energy.
B. The entrance of more women into the labor force.
C. A law requiring mandatory retirement from the labor force at age 55.
D. An increase in the proportion of total output that consists of capital or investment goods.
Answer: C
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If the marginal cost of a monopolist exceeds its marginal revenue, ________
A) additional production reduces profits B) additional production enhances profits C) the difference between its marginal revenue curve and demand curve is at the highest D) the difference between its marginal revenue curve and demand curve is at the lowest
The classical model indicates that at the equilibrium interest rate, saving is
A) equal to investment. B) greater than investment. C) unnecessary for investment. D) less than investment.