Suppose a drought in australia has seriously impaired agricultural productivity. how would that impairment in productivity affect short-run aggregate supply?
Answer: It would cause the short-run aggregate supply curve to shift to the left.
Droughts that reduce agricultural productivity will cause the short-run aggregate supply curve to shift to the left.
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Economists estimate that an increase in tax rates by 8% will ________ work by ________.
A. increase; 1% B. decrease; 15% C. increase; 15% D. decrease; 1%
Which of the following is false? a. The price elasticity of supply measures the sensitivity of the quantity supplied to the changes in the price of the good. b. The price elasticity of supply is defined at the percentage change in the quantity supplied divided by the percentage change in price. c. Goods with a supply elasticity that is greater than 1 are called relatively elastic in supply
d. When supply is inelastic, a 1 percent change in the price of a good will induce a more than 1 percent change in the quantity supplied.
Which of the following would encourage consumers to economize on health-care expenditures and producers to supply health-care services more efficiently?
a. an increase in out-of-pocket expenditures by health-care consumers b. decreased reliance on personal Medical Savings Accounts and health-care expenditures from the accounts c. decreased reliance on the purchase of catastrophic health insurance coverage and less reliance on insurance with first-dollar coverage and small co-payments d. the establishment of a national health-care system that would provide coverage to all people
Which of the following is an illegal market?
a. an Internet movie subscription service b. a shop selling counterfeit designer goods c. a retailer offering imitation leather shoes d. a home-exchange networking website