Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. An oil embargo would probably
A. decrease both the equilibrium output and the price level.
B. decrease the equilibrium output and increase the price level.
C. increase the equilibrium output and decrease the price level.
D. increase both the equilibrium output and the price level.
Answer: B
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What is meant by comparative statics? Assume that a firm wants to set up a factory. It considers four different locations
The rent of the factory space and the time taken to transport the products from each of the locations to the market is shown in the table below. It is also given that the opportunity cost of time is $10 per hour. a) Which is the optimum location? b) If the opportunity cost of time changes to $30 per hour, is there any change in the optimum? Location Time Taken to Transport Products to the Market (hours per month) Rent ($ per month) 1 180 3,000 2 150 3,200 3 100 3,600 4 60 4,100
The percentage of people employed aged 16 years and older divided by the working-age population is known as the
A) employment rate. B) employment-to-population ratio. C) labor force participation rate. D) working-age population ratio.