The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to
a. shift outward.
b. shift inward.
c. become flatter.
d. become steeper.
b
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Suppose the equilibrium price of milk is $3 per gallon but the federal government sets the market price at $4 per gallon. The market mechanism will force the milk price back down to $3 per gallon unless the government:
A) rations the excess demand for milk among consumers. B) buys the excess supply of milk and removes it from the market. C) Both A and B are plausible actions. D) The government cannot maintain the price above the equilibrium level.
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.
The crowding model of discrimination suggests that:
A. women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. B. employers having high discrimination coefficients will be crowded out by nondiscriminating employers in the long run. C. firms will base hiring decisions on group averages, rather than on individual characteristics and productivity. D. occupational segregation is largely the result of freely made rational choices of women and minorities.
In recent years the life insurance industry has emphasized
A) whole life policies. B) group insurance. C) less risky investments. D) the purchase of short-term assets.