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 E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
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Steak is a normal good. A decrease in the price of steak
a. causes the budget line to rotate inward b. makes the supply of steak more elastic c. decreases consumers' purchasing power d. makes consumers poorer e. increases consumers' purchasing power
Marginal utility has a negative slope. This is because of the
a. optimal purchase rule. b. law of increasing costs. c. law of diminishing marginal utility. d. marginal rate of substitution.
The decisions of buyers and sellers that affect people who are not participants in the market create
a. market power. b. externalities. c. profiteering. d. market equilibrium.
Stimulus checks, lower interest rates, decrease in the reserve requirement and lower taxes are all examples of
A. Monetary Policy B. Fiscal Policy C. Contractionary Policy D. Expansionary Policy