If there was initially a shortage in the market for a product, then:
A. Sellers will drive the price down
B. Sellers will drive the price up
C. Buyers will drive the price down
D. Buyers will drive the price up
Answer: D
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The price of natural gas fell and the quantity sold also fell. Everything else being equal, it is consistent that
A. the price of oil fell. B. natural gas workers received large wage increases. C. more efficient gas drilling equipment was installed. D. consumer incomes rose. E. the supply of natural gas fell.
Consider a market consisting of seven firms with market shares of 40, 20, 10, 10, 8, 7, and 5 percent, respectively. Which of the following statements is true?
a. The four-firm concentration ratio would be 0.03. b. The Herfindahl index would be 1,000. c. The Herfindahl index would be 2,228. d. The Herfindahl index would be 1,500. e. The Herfindahl index would be 2,338.
What happens to the Phillips curve when the expected rate of inflation rises?
A) The curve shifts to the left. B) The curve becomes horizontal. C) The Phillips curve is unaffected. D) The curve shifts to the right.
If the Fed lowers the federal funds rate, eventually the
A) AS curve shifts rightward, decreasing real GDP and raising the price level. B) AS curve shifts leftward, decreasing real GDP and raising the price level. C) AD curve shifts leftward, decreasing real GDP and raising the price level. D) AD curve shifts leftward, decreasing real GDP and lowering the price level. E) AD curve shifts rightward, increasing real GDP and raising the price level.