Refer to the above figure. The equilibrium level of real GDP occurs
A. to the right of point A.
B. at point A.
C. to the left of point A.
D. at the undetermined point on the graph depending upon the level of investment.
Answer: B
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A decrease in the quantity of available resources would be represented by:
a. a steeper PPC. b. a point inside the PPC. c. an inward shift of the PPC. d. an upward movement along the PPC. e. a downward movement along the PPC.
Consider the diagram below, where E is the consumer's original equilibrium position. We know good X is not a normal good if, as income increases, the consumer's new equilibrium position is at point:
A. A
B. B
C. C
D. D
Which of the following is a possible explanation for the shift of the production possibilities curve illustrated?
a. an increase in the number of idle factories b. a technological advance that affects only bicycle production c. a technological advance that affects both pizza and bicycle production d. a decrease in the quantity of labor available due to emigration
If the market power of a labor union enables it to offset the market power of an oligopolistic firm, this is called
a. monopolistic competition b. cartel pricing c. price discrimination d. contestable markets e. countervailing power