Economists predicted that the price of a depletable natural resource would rise by about 15 percent. Actually the price fell 10 percent. What most likely happened?
A. A government subsidy was removed.
B. Extraction costs increased.
C. Price controls were suspended.
D. An unexpected discovery of reserves was made.
Answer: D
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Outline the policy choices for contractionary and expansionary options of the Fed
Which of the following describes the time period during which the international monetary system operated on a managed float system?
a. From the late 19th century until the beginning of World War I. b. In the period between World War I and World War II. c. During the period of the Bretton Woods agreement from 1944 to 1971. d. Since the end of the Bretton Woods agreement.
Referring to the Economics in Practice on page 320: A successful celebrity endorsement of a product will most likely ________ for the product, resulting in a higher equilibrium price and a larger equilibrium quantity.
A. increase the demand B. increase the supply C. decrease the supply D. decrease the demand
If the economy is on the flat part of the aggregate supply curve, contractionary fiscal policy works well to decrease the price level with little decrease output.
Answer the following statement true (T) or false (F)