Refer to Figure 26.5. Which firm is producing the allocatively efficient level of output and is using the least amount of economic resources to produce each unit of output?

A decrease in supply shifts the supply curve to the left

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

The less freedom people are given to choose the date of their retirement, the

a. more elastic is the supply of labor. b. less elastic is the supply of labor. c. flatter is the labor supply curve. d. smaller is the decrease in employment that will result from a tax on labor.