In the above graph, unit elasticity would occur at approximately point _____.

The "home" equilibrium will provide the highest level of consumer satisfaction from domestic resources whenever:

a. the marginal products of labor are equal. b. capital and technology are not factors in the decision of what to produce. c. perfect competition in product and labor markets exists. d. Adam Smith's "invisible hand" is not an interfering factor.

Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy

Indicate whether the statement is true or false