While moving along a production possibilities frontier, the ...

[mspears3]

While moving along a production possibilities frontier, the amount of labor ________, the amount of capital ________, and the level of technology ________.
 
  A) varies; varies; varies
  B) varies; is fixed; is fixed
  C) is fixed; is fixed; is fixed
  D) is fixed; is fixed; varies
  E) varies; is fixed; varies

Question 2

If the minimum wage is set
 
  A) above the equilibrium wage rate, it will create unemployment.
  B) equal to the equilibrium wage rate, it will create a shortage of labor.
  C) below the equilibrium wage rate, it will create unemployment.
  D) equal to the equilibrium wage rate, it will create a surplus of labor.
  E) below the equilibrium wage rate, it will create a shortage of labor.

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Answer to Question 1

C

Answer to Question 2

A