Investment Goods B D C Consumption Goods E Figure 17.5 A movement from point C to point B in Figure 17.5 illustrates O An increase in the unemployment rate. O An unattainable combination of consumption and investment goods. O A decreased capacity to produce. O The short-run opportunity cost of achieving long-run economic growth.

Suppose that in the year 2015, Oceanaire, Inc. planned to produce 500,000 units of its lightweight scuba tanks. Of the 500,000 it planned to produce, a total of 30,000 units would be added to the inventory at its new plant in Arizona. Also assume that these units have been selling at a price of $250 each and that the price has been constant over time. Suppose further that this year the firm built a new plant for $5 million and acquired $3.0 million worth of equipment. It had no other investment projects, and to avoid complications, assume no depreciation. Now suppose that at the end of the year, Oceanaire had produced 500,000 units but had only sold 460,000 units and that inventories now contained 40,000 units more than they had at the beginning of the year. At $250 each, that means that the firm added $10,000,000 in new inventory. This year Oceanaire actually invested $ 18000000. (Enter your response as an integer.) Oceanaire planned to invest $ (Enter your response as an integer.)

When the U.S. government removes investment tax credits: O technological innovation advances more rapidly. O the cost of capital increases. O the return on investment increases. O capacity utilization in the economy expands. O consumption spending falls.

50 45 ↑ases 40 35 30 25 20 15 10 5. 30 20 30 40 50 60 70 80 Refer to Figure 2-4. It is possible for this economy to produce 40 toothbrushes and 20 toasters. O 50 toothbrushes and 30 toasters. O 70 toothbrushes and 40 toasters. O All of the above.

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If the maximum potential combination of consumer and capital goods produced by an economy has increased over time, which of the following is true? a. Marginal tax rates have increased due to contradictory fiscal policy.  b. Keynesian policy initiatives have allowed for increased consumption of both consumer and capital goods. c. New physical capital has been introduced to firms throughout the economy. d. Resources are being utilized inefficiently at this combination of goods and services.  e. Monetary policy authorities have effectively decreased bank reserves through open market operations.

uestion 3 How will an increase in labor productivity affect equilibrium in the labor market? O The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease. O The demand for jobs will increase and the equilibrium wage and quantity of labor will increase. O The supply of labor will increase and the equilibrium wage and quantity of labor will increase. O The demand for labor will increase and the equilibrium wage and quantity of labor will increase.

One indicator of an efficient macro allocation is the output valuenational economy produced in a certain period. This is because the amount of national output can indicate several important things in a national economy, including those related to the productivity of a country and how efficient the resources are in the economy to produce goods and services. In connection with this: a. Explain 3 methods of calculating national income. b. Explain why the Gross Domestic Product (GDP) of developing countries is greater than the Gross National Product (GNP)!