Which of the following statements correctly reflects the developments in the U.S. automobile industry following an interest rate decrease by the Federal Reserve? a. Both equilibrium output and price will increase. b. Both equilibrium output and price will decrease. c. Equilibrium output will increase, and price may decrease. d. Both equilibrium output and price may increase. e. none of the above statements is correct.

Which of the following statements correctly reflects the developments in the U.S. automobile industry following an across the board 2% increase in the productivity of auto workers in conjunction with a wage increase by a magnitude that increases TC by 1%? a. Equilibrium price may increase and employment in the industry will rise. b. Equilibrium price will decrease and employment in the industry will fall. c. Equilibrium price will not change but employment in the industry will rise. d. Output in the industry will increase. e. none of the above statements is correct.

Suppose that currently 4 million automobiles are imported into the U.S. and the average price of those automobiles is $25,000. Further suppose that Congress passes legislation approving a 5 million annual quota on imports, which is signed into law by the President. Which of the following statements correctly reflects the subsequent developments in the domestic U.S. automobile industry? a. Equilibrium price & quantity will decrease. b. Equilibrium price will increase and the quantity will decrease. c. Equilibrium price will decrease and the quantity will not change. d. Neither Equilibrium price nor quantity will be affected. e. none of the above statements is correct.

Refer to the information provided below in answering the next 5 questions. 1. Both supply and demand increase. 2. Both supply and demand decrease. 3. Supply increases and demand decreases. 4. Supply decreases and demand increases.

5. Demand increases

6. Demand decreases

7. Supply increases

8. Supply decreases

Which of the above situations will cause price to decrease? Number(s)________

Which of the above situations will cause price to increase? Number(s)_________

Which of the above situations will cause quantity to increase? Number(s)_________

In which of the above situations will cause quantity to decrease? Number(s)_________

In which of the above situations is the price change indeterminate? Number(s)_________

The Federal government requires automobile manufacturers to install pollution control equipment. This is an illustration of the: A. intrusion problem. B. production of public goods. C. internalization of external benefits. D. internalization of external costs. E. none of the above

If education levels and crime rates are inversely related, then education: A. is not subject to the exclusion principle. B. entails external benefits. C. creates a free-rider problem. D. should be produced in the private sector.

Suppose Xenia has a GDP of $30,000,000 and a population of 500,000 with a labor force of 400,000. Further suppose that 50,000 people are not working, of which 40,000 are actively seeking employment and 10,000 have given up. Further, suppose that the frictional rate of unemployment is 2% and the economic cost of unemployment is $3,000,000. Please use this info to answer the next six questions.

The UE rate in Xenia is ______. The structural rate of unemployment is ______. The number of people who are structurally unemployed is _______. The number of people who are cyclically unemployed is _______.

Adding the market value of all goods and services produced in an economy in a year would result in: A. The calculation of GDP for that year B. The calculation of NDP for that year C. An amount less than GDP for that year D. An amount greater than GDP for that year

Which of the following is the best example of investment as defined by economists? A. A small business owner purchases new machinery for their business B. A small business owner purchase U.S. government savings bonds C. An individual purchases stock on the New York Stock Exchange D. An individual deposits money into a long-term retirement account

I would prefer to retire in 14 years. But to afford that "luxury", my retirement portfolio must double in value. Assuming that there are no further contributions to my portfolio, what annual rate of return must I earn on my existing portfolio? _______.

Someone once said "Inflation is our friend. During inflationary times we repay our loans in cheaper dollars and therefore we benefit from the inflation." Do you agree? Please Explain.

Based on the data provided in the table below, please calculate the rate of inflation in the year 2013. YEAR CPI 2010 218.056 2011 224.939 2012 229.594 2013 232.957 2014 236.736 2015 237.017 2016 240.007 2017 245.120 2018 251.107 2019 255.657 2020 258.811

Suppose the total market value of all final goods and services produced in 2006 is $500 billion and the total market value of final goods and services sold is $450 billion. We can conclude that: A. GDP in 2006 is $450 billion. B. NDP in 2006 is $450 billion. C. GDP in 2006 is $500 billion. D. inventories in 2006 fell by $50 billion.

Suppose that an economy's output does not change from one year to the next, but the price level doubles. What happens to nominal GDP? A. nominal GDP doubles B. nominal GDP is halved C. nominal GDP doesn't change D. There is not enough information to determine what happens to nominal GDP

Suppose the same consumer market basket that cost $100 on January 1, 1990, costs $200 on Dec 31, 1999. The average annual rate of inflation during that period was_______%