Which of the following is an example of an adverse supply shock?
A) a nationwide drought lasting for many months
B) an outbreak of war among several of the Middle Eastern oil-producing countries
C) an influenza virus that affects 50 percent of the labor force over a two month period
D) a, b, and c
E) a and c
D
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When Susan makes the statement, "The government should spend less money to take care of national parks," she is
A) making a normative statement. B) making a positive statement. C) testing an economic model. D) not dealing with scarcity.
Janelle spends all of her income on songs from iTunes ($1 each) and applications ($5 each) for her iTouch. If she makes her best affordable choice, she purchases 20 songs and 4 applications, what is her real income in terms of applications?
A) 40 applications B) 4 applications C) 10 applications D) 20 songs
Which of the following is inconsistent with a monopoly?
a. a single seller b. a downward-sloping demand curve c. marginal revenue exceeds price d. a U-shaped average total cost curve
A firm might offer efficiency wages so its workers will eat a more nutritious diet and therefore be healthier and more productive
a. True b. False Indicate whether the statement is true or false