A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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Which of the following would shift the supply curve for coffee to the right?
a. An innovation in agricultural techniques that allows growers to produce coffee less expensively. b. A late frost in Brazil that destroys 75% of its coffee bean crop. c. An increase in the wages paid to coffee bean pickers. d. A rise in the popularity of espresso, cappuccino, and other exotic coffee drinks.
Which of the following is TRUE about product markets?
A) Factors (land, labor, capital, and entrepreneurial ability) flow from firms to households. B) Factors (land, labor, capital, and entrepreneurial ability) flow from households to firms. C) Goods and services flow from firms to households. D) Goods and services flow from households to firms.
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.
Market structure depends upon
A) the ease of entry and exit. B) the ability of firms to differentiate their goods and services. C) the number of firms in the market. D) All of the above.