Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced.
B. an unattainable production point.
C. what society wants.
D. the economy's optimal production point.
Answer: A
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All of the following impact the effectiveness of Fed policy except
A. Expectations about the economy in the future. B. Trade Unions. C. Global sources of money. D. The time lag between when interest rates change and when investment changes.
What is a black market? What types of goods are likely to be traded in a black market? What are the problems that black markets pose in an economy?
What will be an ideal response?
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is consumer surplus reduced?
A. $14,450 B. $5,400 C. $12,000 D. $3,600
If the marginal benefit Isaac derives from the consumption of another candy bar is greater than the price of the candy bar, then: a. Isaac will not purchase any more candy bars
b. Isaac will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is less than the price. d. Isaac's total utility will diminish if he purchases the candy bar.