Refer to the above figure. At demand curve D2, price equals ________ and economic rent equals ________.
A. OF; FHGO
B. OE; KHG
C. OE; EKGO
D. OF; KHG
Answer: A
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Which of the following is a normative economic statement?
a. The unemployment rate for the United States is currently 5.4 percent. b. The inflation rate in the United States is too high. c. An increase in the price of a good will reduce the amount purchased. d. Higher profits in an industry will attract more entrepreneurs into the industry.
Which statement is true?
A. More than any other region in the nation, the South prospered the most in the years following the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s, all bypassed the South. C. Before the Civil War most of the nation's large farms were located in the North. D. None of the choices are true.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
When applied to labor markets, the law of supply suggests that:
A. a decrease in the wages earned by nurses will cause the quantity of nurses supplied to increase. B. a decrease in the wages earned by nurses will cause the quantity of nurses demanded to increase. C. an increase in the wages earned by nurses will cause the quantity of nurses supplied to increase. D. an increase in the wages earned by nurses will cause the quantity of nurses demanded to increase.