Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?
A. 40 percent B. 95 percent C. 57 percent D. 60 percent
What is the annual rate of growth of per capita real Gross Domestic Product (GDP) if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 2 percent?
A. 4 percent B. 2 percent C. -2 percent D. 6 percent
Absolute price elasticities are calculated for four goods, and the values are: 0.009; 1.0; 3.5; and 4. Which indicates the most price-responsive situation?
A. 4.0 B. 0.009 C. 3.5 D. 1.0
Which of the following is NOT true of a perfectly competitive firm?
A. It sells only a small fraction of the total quantity exchanged in the market. B. It seeks to maximize revenue. C. It is unable to influence the price of the good it sells. D. It faces a perfectly elastic demand curve.