Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
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An increase in labor supply will cause, other things the same ________
A) real wages and employment to rise B) real wages to fall and employment to rise C) real wages to rise and employment to fall D) real wages and employment to fall
If a city decides to lift restrictions of how many taxi cabs can operate, social welfare will increase
What will be an ideal response?
A curve showing the relationship between tax rates and tax revenues is called a __________ curve
A) Phillips B) Keynesian C) Gaussian D) Laffer
Aggregate demand decreases and real output falls, but the price level remains the same. Which factor most likely contributes to downward price inflexibility?
A. The wealth effect. B. Business taxes. C. Fear of price wars. D. The multiplier effect.