Exam 5: A Closed-Economy One-Period Macroeconomic Model

The PPF determines

The rate at which one good can be converted technologically into another is called

If public goods can be produced more efficiently,then

Which of the following is not a reason for solving the model with a PPF?

A competitive equilibrium is a state of affairs in which

With a linear production function in labor only,which of the following must be true?

Relative to the social optimum,monopoly power tends to lead to

In an economic model,an endogenous variable is

Supply-side economists argue that

The variable G considered in the model encompasses

Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict

In the model of public goods,when the government chooses public goods provision optimally

Under a Pareto Optimum

At the competitive equilibrium with a positive proportional labor income tax

The tax base is

PPF is the

When the tax rate increases,the tax revenue

A relationship that shows the technological possibilities for an economy as a whole is called a

In an economic model,an exogenous variable is

At the competitive equilibrium with a positive proportional labor income tax