At macroeconomic equilibrium
A) total taxes equal total transfers. B) total consumption equals total production.
C) total investment equals total inventories. D) total spending equals total production.
D
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The PPF shifts if
A) the unemployment rate falls. B) people decide they want more of one good and less of another. C) the prices of the goods and services produced rise. D) the resources available to the nation change.
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. Ann spends 8 hours of each day producing and 1 hour of each day stealing. It is probably the case for her that
A. at some point the MB/MC ratio for producing fell below the MB/MC ratio for stealing. B. her MB/MC ratio for producing was always greater than her MB/MC ratio for stealing. C. her MB/MC ratio for producing never changed, no matter how much or how little she produced. D. her MB/MC ratio for stealing never changed, no matter how much or how little she stole. E. There is not enough information to answer the question.