Refer to the information provided in Figure 3.12 below to answer the question(s) that follow.
Figure 3.12Refer to Figure 3.12. The supply curve for hula hoops shifts from S0 to S1. This could be caused by
A. a decrease in the demand for hula hoops.
B. a decrease in the number of firms selling hula hoops.
C. a decrease in the price of hula hoops.
D. either B or C.
Answer: B
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A situation in which output decreases while prices increase is often referred to as:
A. stagflation. B. inflation. C. negative economic growth. D. a recession.
The marginal product of labor can be defined as: a. the change in profit divided by the change in labor, other factors of production held constant
b. the change in total output provided by a one unit increase in labor employed, other factors of production held constant. c. the total output divided by the total labor utilized. d. the change in labor utilized divided by the change in total output, other factors of production held constant.
If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would
a. rise, making aggregate demand shift right. b. rise, making aggregate demand shift left. c. fall, making aggregate demand shift right. d. fall, making aggregate demand shift left.
The type of unemployment that occurs because of a recession is called:
A. frictional unemployment. B. seasonal unemployment. C. natural unemployment. D. cyclical unemployment.