Assume that in recent years the cost of producing microbrew beer in the U.S. has decreased largely due to technological improvements. At the same time, more and more Americans prefer microbrew beer over wine
Which of the following best explains the effect of these events in the microbrew beer market?
A) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
D) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price.
B
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If the number of employed workers in an economy is 8 million, the number of potential workers in the economy is 12 million, and the number of adults not in the labor force is 1 million, the number of unemployed people in the economy will equal:
A) 3 million. B) 5 million. C) 1 million. D) 7 million.
In economics, a "normal profit" is the return to
A) labor. B) capital. C) land. D) entrepreneurshi
A real option can present management with the opportunity to
A) vary output. B) abandon a project. C) postpone a project. D) All of the above
If a developing country makes its currency fully convertible, it runs the risk of having too:
A. high levels of domestic saving and investment. B. much domestic saving and not enough domestic investment. C. low levels of domestic saving and investment. D. little foreign investment.