What is the difference between an "increase in demand" and an "increase in quantity demanded"?
A) There is no difference between the two terms; they both refer to a shift of the demand curve.
B) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.
C) There is no difference between the two terms; they both refer to a movement downward along a given demand curve.
D) An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve.
Answer: B
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?
A) The equilibrium point will move from A to E. B) The equilibrium point will move from A to B. C) There will be no change in the equilibrium point. D) The equilibrium point will move from A to C.
The price for labor is the wage rate. What happens to the supply of labor if wages increase?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
Which of the following statements is true of confidence intervals?
A. Confidence intervals in a CLM are also referred to as point estimates. B. Confidence intervals in a CLM provide a range of likely values for the population parameter. C. Confidence intervals in a CLM do not depend on the degrees of freedom of a distribution. D. Confidence intervals in a CLM can be truly estimated when heteroskedasticity is present.
The best that this firm in the graph above can do is
A. maximize profits.
B. break-even.
C. minimize losses.
D. make a small profit.