If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:

At low wages, the labor supply curve for most people slopes upward because

A) the demand for labor is perfectly elastic at low wages. B) as wages increase the opportunity cost of leisure increases. C) as wages increase income also increases unless hours worked decrease. D) the supply of labor is perfectly inelastic at low wages.

In the short run, some costs are fixed

a. True b. False Indicate whether the statement is true or false