With the Assumption That the Marginal Product of Labor Is

question 74

Multiple Choice

With the assumption that the marginal product of labor is constant and that labor is the only variable resource, the slope of the PPF is:

• A) positive and increasing.
• B) negative and decreasing.
• C) negative and constant.
• D) unrelated to the issue at hand.

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Definitions:

Coffee

A beverage made from brewed coffee beans, widely consumed globally and subject to market dynamics affecting its price and supply.

Quota Rents

The earnings that accrue to the licensee of an import license when the government imposes a quota.

Import Licenses

Official permissions required by governments for the importation of certain goods, often used to control the volume and types of goods entering a country.

U.S. Trade Protection

Policies and measures implemented by the United States government to protect its industries from foreign competition, including tariffs, quotas, and subsidies.