The Law of Variable Proportions deals with the___________________between the input of productive resources and and the output of final products.

Refer to Figure 21.2. Which country has the more unequal distribution of income?

A) Urbania B) Ruratania C) They may have the same absolute income distribution although their relative income distribution is different. D) There is insufficient information to answer the question.

According to Gordon which of the following statements about Friedman's fooling model is accurate?

A) The demand for labor depends on the nominal wage. B) As prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor. C) The supply curve of labor depends on the expected real wage. D) All of the above statements are accurate.