On account of a massive construction boom in a country, the demand for iron ore increases substantially. This causes iron ore prices to escalate. Producers increase iron ore mining considerably in the short run, in spite of knowing that this will adversely affect future availability of ore. Which of the following is most similar to the scenario described above?
a. Corn producers hoard their supplies in order to induce a price hike.
b. Petroleum manufacturers increase extraction in response to sky-rocketing fuel prices.
c. The government of a country makes aforestation mandatory for lumber firms.
d. Impressive revenue generation induces the government of a country to impose additional fuel surcharge.
e. To discourage smoking, the government of a country increases sales tax on cigarettes.
b
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Since classical economists believe that both V and Q are constants for an economy in short-run equilibrium, the equation of exchange becomes a theory in which:
a. the quantity of money explains prices. b. the quantity of money explains velocity. c. the quantity of money explains real GDP. d. changes in M cause changes in V. e. prices are never flexible
An increase in the demand for musicians ________ the number of musicians employed, and ________ the wages paid to musicians.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
When interest rates fall, bond values rise.
Answer the following statement true (T) or false (F)
A government program that invested in financial institutions and automakers to help stabilize markets during the great recession of 2008 was the _____
a. Troubled Asset Relief Program b. Social Security System c. Supplemental Security Income Program d. Public Housing Assistance Program e. Deposit Insurance Program