Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, how many apartment units are rented?
A) 2,000 B) 3,000 C) 4,000 D) None of the above answers is correct.
An above full-employment equilibrium is
A) a theoretical possibility but cannot happen in reality. B) the equilibrium in which the economy is in most of the time. C) when real GDP exceeds potential GDP. D) the period of time when prices are falling.
To reduce adverse selection
A) firms can use screening. B) both consumers and firms can use screening. C) the government could eliminate all monopolies and oligopolies. D) Both B and C.
Wealthy countries increasingly feel that trade:
A. is sometimes acting as a barrier to poorer countries' development. B. is an effective political tool to use against poorer countries. C. can sometimes be a more powerful lever than aid to help poorer countries develop. D. can help poorer countries development, but hurt their overall growth.