Refer to the data. The equilibrium level of income (Y) is:
(Advanced analysis) Answer the question on the basis of the following consumption and
investment data for a private closed economy. Figures are in billions of dollars.
C = 60 + .6Y
I = I 0 = 30
A. 360.
B. 225.
C. 200.
D. 135.
B. 225.
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Which of the following is NOT an example of technological progress?
A) the invention of the microwave oven B) an increase in the labor supply as the result of population growth C) the development of laser eye surgery D) the development of smart phones
When compared to a perfectly competitive industry, in a monopoly:
A) both consumer surplus and social surplus are larger. B) consumer surplus is lower but social surplus is larger. C) both consumer surplus and social surplus are smaller. D) consumer surplus is higher but social surplus is smaller.
Assume that U.S. agricultural land is used either to raise cotton for clothing or to grow wheat. Agricultural researchers develop a new wheat hybrid that is more resistant to drought and insects. What effect will this have on the production possibilities frontier for cotton and wheat?
a. maximum possible production of both cotton and wheat will rise b. maximum possible production of cotton will rise; maximum possible production of wheat will not change c. maximum possible production of wheat will rise; maximum possible production of cotton will not change d. maximum possible production of cotton will rise; maximum possible production of wheat will fall e. maximum possible production of wheat will rise; maximum possible production of cotton will fall
An example of a demand shifter is:
A) factor prices. B) technology. C) consumer preferences. D) producer expectations.