If an Economy Is Producing a Level of Output That

question 64

Multiple Choice

If an economy is producing a level of output that is on its production possibility frontier,the economy has:

• A)idle resources.
• B)idle resources but is using resources efficiently.
• C)no idle resources but is using resources inefficiently.
• D)no idle resources and is using resources efficiently.

Recognize the distribution of wealth among different percentiles of wealth holders in 2013 in the United States.

Differentiate between the distribution of wealth and income inequality in the United States.

Understand the relationship between statutory minimum wage levels and employment.

Assess the effect of policy on income distribution through concepts like market and disposable income Gini coefficients.

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Definitions:

Total Revenue

The total income generated by a company or entity from its business activities, often calculated as the product of price and quantity sold of goods or services.

Marginal Revenue

The supplementary income generated from the sale of an additional good or service by a firm.

Total Revenue

The entire amount of income generated by the sale of goods or services by a firm.

Market Price

The prevailing rate at which a product or service is available for purchase or sale in a market driven by competition.