Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector X with a price of ________ and a quantity of ________.
A. P0; Q0
B. P1; Q0
C. P0; > Q1
D. P1; Q1
Answer: C
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The Chinese policy of one child per family provided McDonald's the opportunity to actively market to:
A) children. B) senior citizens. C) parents. D) none of the above.
Investment banks specialize in
(a) Managing borrowing and the deposits of its customers (b) Managing commercial papers (c) Facilitating the loan interactions between banks and merchants (d) Handling long-term securities such as stocks, bonds and other securities.
Assume an economy produces only hamburgers and hot dogs and the base year is 2016. Quantities ProducedPrices?2016201720162017Hamburgers2,0003,000$2$3.00Hot dogs3,0004,000$1$1.50Given the data in the table above, what is the value of real GDP in 2017?
A. $ 7,000 B. $10,000 C. $10,500 D. $ 5,000
Figure 10.6 shows prices, demands, and cost data for the only restaurant in a small town. Compared to the profit under the single price policy, how much additional profit does the restaurant earn under the senior discount policy of a $7 senior price and a $10 non-senior price?
A. $920 B. $580 C. $300 D. $280