Refer to the figure above. If there is downward wage rigidity in the market, what is the wage rate at which wages will be held, everything else remaining unchanged?

Older Americans living on a pension and therefore on a fixed income tend to be made

A. better off when prices rise. B. better off when inflation rates rise. C. worse off when prices rise. D. worse off when prices fall.

Points that lie below the production possibilities curve are inefficient because:

A. too many goods are being produced. B. producers face scarcity. C. producing more of one good means producing less of the other. D. more of one good could be produced without producing less of the other.