Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
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Can electric utility companies always raise their total revenue by raising their rates?
What will be an ideal response?
Whether one views the discretionary policies of the 1960s and 1970s as destabilizing or believes the economy would have been less stable without these policies, most economists agree that
A) stabilization policies proved more difficult in practice than many economists had expected. B) stabilization policies proved not to be inflationary. C) the nondiscretionary policymakers were right in believing that the private economy is inherently stable. D) the discretionary policymakers were right in believing that the private economy is inherently stable.
If the demand in a perfectly competitive market decreases, the price will:
A. temporarily increase. B. temporarily decrease. C. increase permanently. D. decrease permanently.
According to the text, all of the following are reasons for firms to merge except
a. to exercise greater market control b. to increase control over suppliers of their inputs c. to increase control over buyers of their products d. to diversify assets e. to form a cartel