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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