If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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If the firms in an oligopoly collude, the results will approximate what other type of industry?
a. perfect competition b. monopolistic competition c. monopoly d. none of the above
If price is on the vertical axis and quantity demanded is on the horizontal axis, why is a demand curve downward sloping (left to right)?
A) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and supply, ceteris paribus. B) Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and quantity supplied, ceteris paribus. C) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and demand, ceteris paribus. D) Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and demand, ceteris paribus. E) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and quantity demanded, ceteris paribus.
What are common resources?
a) both rival in consumption and nonexcludable b) both rival in consumption and excludable c) both nonrival in consumption and excludable d) both nonrival in consumption and nonexcludable
One of Keynes’ most profound insights was that
a) markets allocate resources efficiently, as if by an invisible hand b) comparative advantage allows all nations to gain from trade c) capitalists exploit workers by paying them less than the total value of what they produce d) the same factor that drives long run growth—technological change—also causes business cycles e) the economy can achieve an equilibrium below its capacity