Figure 4-22
Because of falling oil prices in the past, Libya could afford fewer imported goods. Government controls were established to limit imports of cigarettes. In 1985, the market price of Marlboros rose to $70 a carton. Which graph in Figure 4-22 best depicts this situation?
a.
1
b.
2
c.
3
d.
4
b
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If the value of the government multiplier is 1.5, which of the following is likely to be true if all other variables remain unchanged?
A) A $1 increase in government expenditure reduces gross domestic product by $1.50. B) A $1.50 increase in government expenditure increases gross domestic product by $1.50. C) A $1.50 increase in government expenditure reduces gross domestic product by $1.50. D) A $1 increase in government expenditure increases gross domestic product by $1.50.
Bill owns a lawn-care company in Windermere, Florida, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed
If Bill's average total cost curve is ATC, his total economic ________ equals ________. A) loss; $800 per week B) profit; $1,280 per week C) profit; $480 per week D) loss; $1,280 per week E) profit; $32 per week
If you thought the share price of a stock was going to fall, would you be more likely to buy a call option or a put option?
A. a call option B. a put option C. a call option and a put option D. There is not enough information given to answer this question.
If interest rates are expected to rise, the bond prices will:
A. fall, due to the demand for bonds decreasing. B. not change until interest rates actually change. C. move in the same direction as the expected change in interest rates. D. rise, as people seek capital gains.