A situation in which a market economy leads to too few or too many resources going to a particular economic activity is known as

If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the

a. higher-paying job has a compensating wage differential of $2 per hour. b. higher-paying job has a compensating wage differential of $12 per hour. c. higher-paying job is intrinsically more attractive than the lower-paying job. d. wage in the higher-paying job must eventually fall due to competition.

Figure 11-1 ? In Figure 11-1, to achieve equilibrium at potential GDP, the government could

A. increase taxes. B. decrease transfer payments. C. increase government purchases. D. None of the above is correct.