How will a decrease in technology from a natural disaster such as a hurricane, ceteris paribus, affect an economy's production possibilities curve?
A. Shift the curve inward.
B. Shift the curve outward.
C. Result in a movement along the curve.
D. Result in a movement from inside the curve to a point on the curve.
Answer: A
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Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 10,000 units
A) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high. B) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low. C) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low. D) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.
The impact of technological change in the health care area has been to
A) reduce the quality of health care while raising the costs. B) reduce the cost of health care. C) increase the quality of health care while decreasing the costs. D) increase both the quality of health care and the costs of health care.
If frictional unemployment increased, but structural unemployment decreased by more, the natural rate of unemployment:
a. Would increase b. Would not change c. Would decrease d. Would be affected in an unpredictable manner
Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007?
A) Global saving and investment imbalances B) Financial market innovation C) Deeper levels of integration across financial markets D) Challenges and failures in financial regulation