Use the Table Below to Answer the Following Questions

question 97

Multiple Choice

Use the table below to answer the following questions.
Table 22.3.1


-Refer to Table 22.3.1. The tables show the labour market and the aggregate production function schedule for the country of Pickett. Potential GDP is

---

Definitions:

MRT

MRT, or Marginal Rate of Technical Substitution, measures the rate at which one input can be reduced per additional unit of another input, keeping output constant.

Excess Demand

Occurs when the quantity demanded of a good or service at a particular price exceeds the quantity supplied, leading to upward pressure on prices.

Excess Supply

The situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Absolute Advantage

The ability of an entity to produce a good or perform a service at a lower cost per unit than another entity with the same resources.