Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the labor supply increases due to immigration, the new equilibrium is most likely to be
A) point h.
B) point f.
C) point d.
D) point e.
E) point b.
A
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Refer to the scenario above. What is the number of unemployed workers in the economy?
A) 1 million B) 2 million C) 3 million D) 4 million
If a central bank does not want to see its currency ________ in value, it may pursue contractionary monetary policy to raise the domestic interest rate, thereby ________ its currency
A) fall; strengthening B) fall; weakening C) rise; strengthening D) rise; weakening
Using the above figure, which of the lines in the above diagram represents a regressive tax?
A) A B) B C) C D) none of them
If the opportunity cost of capital is below the rate of return to capital in the perfectly competitive beauty salon industry,
A. resources will flow into the industry. B. beauty salon owners must be earning negative economic profit. C. the beauty salon industry cannot be in long-run equilibrium. D. beauty salon owners must be earning negative marginal revenue at their current levels of output.