Refer to the graphs below. Assume that the economy is initially at equilibrium where AD2 and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. A movement from point C to point B in graph 2 would most likely be associated, in graph 1, with a shift of:
A. AD to the right
B. AD to the left
C. AS to the right
D. AS to the left
A. AD to the right
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Consumers must understand the law of diminishing marginal utility in order to maximize their satisfaction
a. True b. False
Unplanned inventory investment equals zero when:
A. expected sales are greater than actual sales. B. planned investment equals actual investment. C. planned investment is less than actual investment. D. planned investment is greater than actual investment.
Which of the following statements is true?
A) Adult males, adult females, and teenagers all have similar rates of unemployment due to job losses. B) Almost half of the total teenage unemployment rate appears to be due to the search for the first job. C) Relative to adult males, adult females and teenagers have more frequent unemployment due to reentry and higher quit rates. D) All of the above.
If a country has a comparative advantage in wine moved from autarky to free trade, this would cause what reaction in the world market?
A. Foreign wine producers would be opposed. B. Domestic wine consumers would be opposed. C. Domestic wine producers would be opposed. D. Domestic wine consumers would not be influenced.