Refer to Figure 4-2. What area represents producer surplus at a price of P2?
A) A + B B) B + D C) A + B + C + D + E D) A + B + C
D
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As a whole, nations are better off after trade and specialization because
A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.
It is difficult to empirically test alternative macroeconomic models against one another because
A. macroeconomic models are always expressed in scientific terms. B. macroeconomic models cannot be expressed in mathematical terms. C. macroeconomic models do not predict the same outcomes from policies. D. macroeconomic models differ in ways that are hard to standardize for.
If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, we would expect the:
A. labor-demand curve in that market to shift left. B. labor-supply curve in that market to shift right. C. labor-demand curve in that market to shift right. D. labor-supply curve in that market to shift left.
Which of the following is a positive economic statement?
A. Government must maintain the current level of defense spending to keep the nation safe B. The minimum wage should be increased to give people a decent wage C. Americans should buy American products in order to boost the national economy D. Stock prices rose to a new record last month for the fourth month in a row