Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. If price is P1, producer surplus is area
A. A + B + E.
B. B + E + G.
C. G.
D. A.
Answer: C
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Technical progress will:
a. shift a firm's production function and its related cost curves. b. not affect the production function, but may shift cost curves. c. shift a firm's production function and alter its marginal revenue curve. d. shift a firm's production function and cause more capital (and less labor) to be hired.
If the U.S. put an import quota on clothes dryers, it would
a. raise U.S. net exports of clothes dryers and raise net exports of other U.S. goods. b. raise U.S. net exports of clothes dryers and lower net exports of other U.S. goods. c. lower U.S. net exports of clothes dryers and raise net exports of other U.S. goods. d. lower U.S. net exports of clothes dryers and lower net exports of other U.S. goods.
A rightward shift in market supply curve could be caused by:
A.) An improvement in technology. B.) An increase in the market price. C.) An increase in wages. D.) The expectation that the market price will fall in the future.
Explain what a macroeconomic shock is, and give three examples of macroeconomic shocks to the U.S. economy in the past 10 years
What will be an ideal response?