Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A)
If there is an increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance, a complement to motorcycles, the equilibrium could move to which point?
A) A B) B C) C D) E
D
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In calculating total spending, after adding together Consumption, Investment, and Government Purchases, we must
a. add imports and subtract exports b. add exports and subtract imports c. compute net consumption and net investment by subtracting products produced abroad d. compute net consumption and net investment by adding products produced abroad e. compute net consumption and net investment by add products consumed abroad
The maximization of profit and the minimization of losses is the primary factor affecting the economic decision making of:
A. entrepreneurs. B. workers. C. consumers. D. public officials.