A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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Which of the following describes monopolistic competition?
A) homogeneous products B) P = MR = MC C) Advertising plays a key role. D) There is only one seller in the industry.
Resource prices that are fixed by long-term contracts help explain why, in the short run, firms will
a. increase output when product prices increase. b. keep production levels constant when product prices decrease. c. keep their product prices constant even if the demand for their good increases. d. keep their product prices constant even if the demand for their good decreases.
Given the table below, if capital is fixed at one unit, diminishing returns begin with the
Amount of total output produced from various combinations of labor and capital.
A. first unit of labor. B. second unit of labor. C. third unit of labor. D. fourth unit of labor. E. none of the above
Which of the following identifies correct reasons for the sustained growth in the Western world post 19th century?
A) Demographic transition and the American civil war B) The American civil war and the Industrial Revolution C) The Agricultural Revolution and the Industrial Revolution D) Demographic transition and the Industrial Revolution