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.
Answer: B
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Restricting imports
A) can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole. B) can protect United States final goods and services in the protected industry and makes consumers better off. C) can protect United States final goods and services in the protected industry and increase economic welfare of the country as a whole. D) can protect United States jobs in the protected industry but will also lead to reductions in U.S. output and income.
MRP represents what the marginal physical product is worth
a. True b. False Indicate whether the statement is true or false
Exhibit 7-3 A marginal product curve
As shown in Exhibit 7-3, the law of diminishing returns applies where there are:
A. more than 5 workers per day. B. fewer than 2 workers per day. C. fewer than 5 workers per day. D. between 2 and 5 workers per day.
An industry with a horizontal long-run supply curve is called a(n) ________ industry.
A. decreasing-profit B. constant-cost C. decreasing-cost D. increasing-cost