Question 1 1 pts In the Closed Economy One-Period model, the production possibilities frontier represents 0 all combinations of consumption and leisure for a xed output. 0 all equally affordable combinations of consumption and leisure for a given wage. 0 all technologically feasible combinations of consumption and leisure. 0 all equally preferred combinations of consumption and leisure. Question 2 1 pts Which of the following could cause a competitive equilibrium to not be Pareto optimal? O Lump sum taxation. O Competitive firms. O Proportional tax on wages. O Consumers caring about their dividend income.Question 3 1 pts Based on the Closed Economy One-Period model, changes in government spending are not likely causes of business cycles because government spending changes in the model predict O countercyclical real wages. O procyclical real wages. O countercyclical employment. O procyclical employment.Question 4 Based on the Closed Economy One-Period model, changes in total factor productivity would be a more plausible cause of business cycles because model experiments involving productivity-induced shifts correctly predict 0 real wages and total hours worked are procyclical. 0 real wages and consumption are procyclical. 0 government spending and consumption are procvclical. 0 total hours worked and government spending are procyclical. In any economic model, an exogenous variable is [ Select ] V and an endogenous variable is [ Select ] VQuestion 5 In any economic model, an exogenous variable is [ Select ] le a stand-in for a more complicated variable determined by the model itself determined outside of the model a variable that has no effect on the workings of the modelQuestion 6 1 pts The desire to smooth consumption is reected in O the consumer's budget constraint. 0 the choice between present and future periods. 0 the production possibilites frontier. O the curvature in the consumer's indifference curve. Question 7 1 pts In the two-period model, the consumer's lifetime wealth is defined as O the quantity of assets the consumer has in the current period. O current income plus future income minus taxes. O current income minus discount future taxes. O the present value of disposable income