The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy down along a stationary short-run aggregate supply curve.
B) It shifted the short-run aggregate supply curve to the right.
C) It shifted the short-run aggregate supply curve to the left.
D) It moved the economy up along a stationary short-run aggregate supply curve.
B
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Which of the following statements regarding historical costs is correct?
A) Historical costs represent what the firm paid for an input when it was purchased, adjusted for inflation. B) Historical costs vary depending on the method of depreciation a firm uses. C) Historical costs are a good indicator of the current opportunity cost of a piece of capital. D) Using historical costs can cause true economic profit to be under or over stated.
In the automobile industry, workers have just negotiated a new contract giving workers a large raise. There has also been an increase in the number of licensed drivers who are in the market for a new car. In the market for new automobiles, the effects that these changes will have on the equilibrium price and quantity are
A. price will increase, and quantity will decrease. B. price will increase, and the effect on quantity is indeterminate. C. price will decrease, and quantity will increase. D. price will decrease, and the effect on quantity is indeterminate.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.
To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages. Fannie Mae and Freddie
Mac A) sell mortgages to investors and use the funds to purchase bonds from banks. B) sell bonds to investors and use the funds to purchase mortgages from banks. C) sell bonds to banks and use the funds to purchase mortgages from investors. D) sell mortgages to banks and use the funds to purchase bonds from investors.