Which of the following is an effect of a subsidy that encourages exports?
a. The amount of labor used in production is lower.
b. The raw materials needed for production are reduced.
c. The costs of production have been reduced.
d. The opportunity costs of production are lower.
c. The costs of production have been reduced.
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Which of the following offers an example of structural unemployment?
a. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-term decline in horse-and- buggy transportation. b. The rise in unemployment among farm workers after harvest. c. The unemployment associated with workers changing jobs. d. The increase in unemployment during recessions.
If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase because businesses will cut back production.
If demand curve D2 represents a monopolistic competitor and demand curve D3 represents a monopoly, then
A. the monopolist has a more elastic demand curve than the monopolistic competitor.
B. the monopolistic competitor has a more elastic demand curve than the monopolist.
C. the monopolist and the monopolistic competitor have identical elasticity in their demand curves.
D. None of these choices are true.
Refer to the graph shown. With an effective price ceiling at Pc, the quantity supplied:
A. falls from Q3 to Q2. B. falls from Q1 to Q2. C. increases from Q1 to Q3. D. increases from Q2 to Q1.