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
You might also like to view...
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase electric cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.
A. is indeterminate, definitely falls B. definitely falls, definitely rises C. definitely rises, is indeterminate D. definitely falls, is indeterminate
A decrease in U.S. prices relative to prices in Europe
A. will increase U.S. imports from Europe. B. will decrease U.S. exports to Europe. C. will not affect U.S. trade with Europe. D. will decrease European exports to the United States.
What is the basic difference between the short run and long run as these terms relate to macroeconomics? Why does this difference occur?
What will be an ideal response?
Which of the following explains why two firms, Apex and Bongo, would engage in implicit collusion, rather than explicit collusion?
A) Implicit collusion always has an enforcement mechanism that forces both firms to collude; explicit collusion does not have an enforcement mechanism. B) Implicit collusion is less costly to both firms than explicit collusion; therefore, profits will be greater for both firms if they engage in implicit collusion. C) Implicit collusion allows Apex to increase its profits at the expense of Bongo without Bongo knowing that collusion has occurred; if Apex engages in explicit collusion, Bongo will realize collusion has taken place and retaliate against Apex. D) explicit collusion is illegal; if the managers of Apex and Bongo engage in implicit collusion they may be within the law.