Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change?
A) The equilibrium point will move from E to C. B) The equilibrium point will remain at E.
C) The equilibrium point will move from E to B. D) The equilibrium point will move from E to A.
D
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If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be
A. 1 unit of robots.
B. 2 units of robots.
C. 3 units of robots.
D. 2 units of outboard motors.
In April 2010, the U.S. economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent. Which of the following best explains this situation? a. The size of the labor force shrunk
b. The number of unemployed workers also increased, but by a smaller percentage. c. The number of illegal immigrants increased substantially. d. The number of discouraged workers increased substantially. e. The number of unemployed workers also increased, but by an even greater percentage.
Managers should maximize
A) social accountability. B) the health and welfare of the employees. C) market share. D) none of these choices.
The J-curve effect that results from currency depreciation results is due to
A) the initial effect having positive effects on the current account balance. B) the value of imports increasing by more than the value of exports at the time of devaluation. C) exports and imports being totally unresponsive to changes in exchange rates. D) decreases in the dollar price of imports.