Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________.
A. rise; rise
B. rise; fall
C. fall; fall
D. fall; rise
Answer: D
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Figure 7-5
Which of the curves in Figure 7-5 could be a firm’s average fixed cost curve?
A. (a) B. (b) C. (c) D. (d)
The only way that the family can consume more and enjoy a higher standard of living is to:
A. decrease the amount each person produces. B. increase both how many people are in the family, and the amount each one produces. C. increase how many people are in the family. D. increase the amount each person produces.
Which of the following statements about normative analysis is correct?
A. Normative analysis is concerned with what is. B. Normative analysis is concerned with what ought to be. C. Normative analysis should not involve value judgments. D. Normative analysis measures the costs and benefits of different courses of action.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.