When there is a shift the aggregate supply curve caused by factors external to a nation's economy, it is called:
A. a trade imbalance.
B. government control.
C. a supply shock.
D. an economic anomaly.
Answer: C
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Which of the following is not an example of a country's infrastructure?
a. Transportation system. b. Communications system. c. Political system. d. Educational system. e. Energy system.
Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade.
A. Students who miss more than three classes are irrational. B. The teacher is assuming that students are irrational, and she must force them to attend class. C. This is an example of a positive incentive for students to attend class. D. This is an example of a negative incentive for students to attend class.
All of the following are characteristics of a perfectly competitive market except:
A) a large number of sellers. B) perfectly elastic demand. C) a homogeneous product. D) barriers to entry.
The historical record indicates that foreign aid has
a. played a major role in helping formerly poor countries grow rapidly and achieve high income levels. b. re-enforced corrupt governments and policies that stifle productive activities. c. helped poor countries escape counterproductive policies imposed by authoritarian political leaders. d. promoted economic growth, but slowed the movement toward political democracy.