Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A. Both the labor force and the population increased.
B. Winter storms cause factories in the north to be shut down for several weeks.
C. Unusually good weather causes the wheat crop to be larger than normal.
D. Government spending increased causing aggregate demand to increase.
Answer: D
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Which of the following is a reason why IBM decided to provide consulting services rather than manufacturing machines?
A) It had a comparative advantage in providing consulting services. B) It had a comparative advantage in manufacturing machines. C) Manufacturing of machines generated a positive. D) Manufacturing of machines generated a negative.
In the IS equation, which of the following is an endogenous variable?
A) autonomous investment B) autonomous net exports C) taxes D) all of the above E) none of the above
The more inelastic the supply of a particular resource:
a. the higher are its transfer earnings. b. the higher is its economic rent. c. the higher are its total earnings. d. the higher is the elasticity of demand for the resource. e. the lower is the elasticity of demand for the resource.
According to the above table, net domestic product (NDP) is
A. $2,265. B. $2,550. C. $1,995. D. $2,850.