Starting from long-run equilibrium, the long-run impact(s) of a sharp drop in oil prices, compared to the original equilibrium, is(are):
A. the same inflation and the same output.
B. lower inflation and lower output.
C. higher inflation and the same output.
D. higher inflation and lower output.
Answer: A
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Your weekly budget for gasoline and movie rentals is $45.00. Referring to the figure above, what is the price per gallon of gasoline?
A) $1.00 B) $1.25 C) $1.50 D) $1.75
According to economic historians, one result of international trade is that it
A) aids in the international transmission of ideas. B) reduces the world-wide output of goods. C) reduces the world-wide consumption of goods. D) causes persistent world-wide inflation.
A farm is able to produce 5,000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 6,000 bushels per acre per year. b. 5,000 bushels per acre per year. c. 1,000 bushels per acre per year. d. 11,000 bushels per acre per year.
If other factors remain? unchanged, technological progress in producing good A definitely will lead to
A) an increase in the market clearing price of good A and a decrease in the equilibrium quantity of good A.
B) an increase in both the market clearing price and the equilibrium quantity of good A.
C) a decrease in the market clearing price of good A and an increase in the equilibrium quantity of good A.
D) a decrease in both the market clearing price and the equilibrium quantity of good A.