Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce. Using the productivity curve graphed, this innovation would be described as
A) a movement upward along the curve.
B) a movement downward along the curve.
C) a shift of the curve upward.
D) a shift of the curve downward.
E) no change to the productivity curve.
C
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Which of the following statements about the price elasticity of demand is correct?
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. B) Demand is more elastic in the long run than it is in the short run. C) The absolute value of the elasticity of demand ranges from zero to one. D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.
Since 2010, the federal funds rate has been well below the rate suggested by the Taylor rule. A likely explanation for the discrepancy is that ________
A) the Fed's dual mandate prevents a close reliance on the Taylor rule B) policy makers decided that instability of the coefficients prevents the Taylor rule from having any role in policy decisions C) in the past, adherence to the Taylor rule led to policy mistakes D) all of the above E) none of the above
How would the graph change if the price ceiling was removed?
a. P2 would move to PC.
b. QD and QS would move to Q2.
c. PC would move to E1.
d. Q2 and QD would move to QS.
An economic system is
A. a way to create new resources. B. a mechanism to allocate scarce resources. C. an organization that generates profits. D. the universe of all resources.