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  • Marginalism led to a new theory which was called #221
  • Generically, the classical economists gave us an idea of the race between the increase of the population and ____________, with an uncertain winner. #222
  • Labor is a mobile factor that can move between sectors, these other factors are assumed to be ____________________. #223
  • The production function tells us the quantity of cloth that can be produced given any input of capital and_________. #224
  • How much labor will be employed in each sector? To answer this we need to look at supply and ___________ in the labor market. #225
  • The demand for labor in each sector depends on the price of ________ and the wage rate. #226
  • In________________, the wage rate is equal to the value of labor’s marginal product. #227
  • In a country that cannot trade, the output of a good must equal its___________ #228
  • In the absence of___________, the economy would have to produce what it consumed, and vice versa. #229
  • Every change in a nation’s economy, including technological progress, shifting consumer preferences, exhaustion of old resources and discovery of new ones, and so on, affects income___________. #230
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