Use the Following to Answer Questions

question 71

Multiple Choice

Use the following to answer questions.
Exhibit: Aggregate Production Function, Labor Market, and LRAS
-(Exhibit: Aggregate Production Function, Labor Market, and LRAS) In Panel (c) , the long-run aggregate supply curve is vertical because

• A) of diminishing marginal returns.
• B) of sticky wages and prices.
• C) perfectly flexible nominal wages in the long run allow any number of wage/price level combinations to result in a real wage that equilibrates the labor market.
• D) the economy is not constrained by diminishing marginal returns since it can change the quantities of all factors of production.

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Definitions:

Ovaries

Female reproductive organs located in the pelvis, responsible for producing eggs (ova) and hormones such as estrogen and progesterone.

Wombs

The organ in female mammals, including humans, where offspring are conceived and in which they gestate before birth; also known as the uterus.

In Vitro Fertilization

A medical procedure in which an egg is fertilized by sperm outside the body, in a laboratory setting.

Petri Dish

A shallow cylindrical glass or plastic lidded dish that biologists use to culture cells or small organisms.