In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X. Refer to the given information. An improvement in the technology used to produce X will:
A. decrease S, increase P, and decrease Q.
B. decrease S, increase P, and increase Q.
C. increase S, decrease P, and increase Q.
D. decrease D, decrease P, and decrease Q.
Answer: C
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Since 1950, it can be observed that the female participation rate in our labor force has
A) increased. B) decreased. C) stayed constant. D) moved erratically up and down.
Consider a nation with an endowment of iron ore and petroleum. If the nation specializes in the production of aluminum and gasoline instead of steel we can say that it is operating:
a. on its production possibilities curve. b. outside its production possibilities curve. c. inside its production possibilities curve. d. on the highest achievable production possibilities curve. e. on the lowest production possibilities curve.
Which of the diagrams illustrate(s) the effect of a decline in the price of irrigation equipment on the market for corn?
A. B only.
B. C only.
C. B and C.
D. D only.
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ________. This would mean that the distribution of income is equal.
A. was above the 45-degree line OB B. was perfectly vertical C. was below the 45-degree line OB D. was the same as the 45-degree line OB