Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the
graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production, and successful publicity campaigns by the government on the virtues of bicycling to work?
A. 3
B. 4
C. 5
D. 6
C. 5
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Liz loves to eat popcorn. Still, the more she eats, the less she wants each additional bite. Her marginal utility from popcorn is
A) diminishing. B) negative. C) increasing. D) zero.
As the U.S. economy recovers from the recession of 2007-2009, stubbornly high unemployment is a concern. For each of the three business cycle models, identify the appropriate policy regime
What will be an ideal response?
Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.
Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of:
A. "who consumes the products produced?" B. "what products will be produced?" C. "where will the products be consumed?" D. "how will the products be produced?"