A firm that is a price taker can:
a. substantially change the market price of its product by changing its level of production.
b. sell all of its output at the market price.
c. sell some of its output at a price higher than the market price.
d. decide what price to charge for its product.
b
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Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) shift the short-run aggregate supply curve to the right. C) move the economy up along a stationary short-run aggregate supply curve. D) shift the short-run aggregate supply curve to the left.
Graphically, producer surplus is the area:
a. above the equilibrium price and below the demand curve. b. below the equilibrium price and below the supply curve. c. above the supply curve and below the demand curve. d. below the equilibrium price and above the supply curve. e. below the equilibrium price and above the demand curve.
From 1960 to about 1980 the net capital outflow of the U.S. was typically
a. small but always positive. b. small and sometimes negative and sometimes positive. c. large and positive. d. large but sometimes negative and sometimes positive.
The CPI for a country in Year 1 was 129 and in Year 2, it was 133. The inflation rate of the country between the two years is approximately ________.
A) 3.1 percent B) 4 percent C) 2.2 percent D) 6 percent