Refer to the above figure. Suppose the equilibrium moves from E' to point E. An event that could have caused this movement is
A) an increase in the real interest rate in the United States.
B) an increase in U.S. productivity.
C) an increase in the perceived stability of the U.S. economy.
D) an increase in demand for Japanese-produced goods by U.S. residents.
D
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Answer the following statements true (T) or false (F)
1. A considerable degree of government control of production and distribution exists in a command economy. 2. The profit motive is one characteristic of a command economy. 3. Competition serves as a regulator in a market economy. 4. In a market economy, prices serve as a rationing mechanism.
An individual bank can lend out at most its:
a. actual reserves. b. fractional reserves. c. legal reserves. d. checkable deposits. e. excess reserves.
In the 1980s, Howard was one of the best car phone repairmen in his area. After staying home in the 1990s and early 2000s to take care of his children, Howard wants to go back to work in the phone repair business. Which of the following can be said about Howard?
A. Because car phones are obsolete, Howard's human capital is less valuable. B. Howard's knowledge of how to repair car phones is obsolete, and his human capital is less valuable now than in 1980. C. Howard's ability to repair car phones represents an obsolete skill. D. All of these could be said about Howard.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PI where P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
? = $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2 Total fixed cost will be $6,000 next year. What is the price forecast for next year?
A. $12 B. $68 C. $60 D. $20