Author Question: An increase in the unemployment rate may be represented as a movement from a point on the production ... (Read 102 times)

jman1234 · **on:** Jun 29, 2018

An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier.

Indicate whether the statement is true or false

Question 2

Identify the two losses of efficiency associated with the imposition of a tariff.

What will be an ideal response?

jazzlynnnnn · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

TRUE

Answer to Question 2

First, consumers must pay a higher price for goods that could be produced at lower cost. Second, marginal producers are drawn into the industry away from other goods, resulting in inefficient domestic production.