Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point A to Point B, there has been
A. an increase in quantity demanded and an increase in quantity supplied.
B. an increase in demand and an increase in supply.
C. an increase in demand and an increase in quantity supplied.
D. an increase in quantity demanded and an increase in supply.
Answer: C
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If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?
A) The MPK of the next unit of capital added equals 12. B) The firm must force the other workers to work more. C) The firm will experience a decline in output. D) The marginal rate of technical substitution is greater than 12.
A mismatch of the skills of unemployed workers and the skills required for existing jobs is defined as:
a. involuntary unemployment. b. cyclical unemployment. c. structural unemployment. d. frictional unemployment.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, demand shifts to the ________ and supply shifts to the ________
A) left, left B) left, right C) right, left D) right, right
During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to
A) reduce the rate of inflation. B) stimulate economic growth. C) reduce unemployment. D) reassure financial markets and promote financial stability. E) reduce the current account deficit.