In the above figure, suppose the economy is initially at point A. The interest rate in Japan rises relative to the interest rate in the United States. As a result, there will be a change from point A to a point such as ________
A) point B
B) point C
C) point D
D) point E
D
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One criticism of the unemployment rate is that it
A) is a stock measure. B) does not include people who are not working and are not looking for work. C) does not include the number of discouraged workers as unemployed. D) counts a new entrant that is actively seeking work as unemployed.
A monopolistic competitor's demand curve becomes less elastic as new entry occurs
a. True b. False Indicate whether the statement is true or false
Producing more cabbage will be inefficient if
A. the marginal opportunity cost of cabbage is less than the marginal value. B. cabbage production can be increased without reducing production of other goods. C. the marginal value of forgone lettuce is greater than the marginal value of cabbage. D. the marginal value of forgone lettuce is less than the marginal value of cabbage.
Suppose that government imposes a specific excise tax on product X of $2 per unit and that the price elasticity of supply of X is unitary (coefficient = 1). If the incidence of the tax is such that the producers of X pay $1.90 of the tax and the
consumers pay $.10, we can conclude that the: A. supply of X is highly inelastic. B. supply of X is highly elastic. C. demand for X is highly inelastic. D. demand for X is highly elastic.