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 A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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Refer to Figure 4-3. What area represents producer surplus at P2?
A) A + B + D B) B + D + G C) B + C + D + E D) B + D
In the summer of 1953, the Korean War ended and government expenditures decreased. In terms of the AS/AD model, this change should have:
A. shifted the AD curve to the left. B. made the AD curve flatter. C. made the AD curve steeper. D. shifted the AD curve to the right.
An increase in output would result in a rise in long-run average costs when there are
A. the law of diminishing marginal product. B. diseconomies to scale. C. constant returns to scale. D. economies of scale.
Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A. there was lack of any competition, so Enron was the winner. B. Enron could charge whatever price it wanted to for energy. C. the accounting profession needs to review its policies quickly. D. there is a competitive market in energy distribution in the United States.