Economically speaking, which of the kinds of change below would be caused when fishermen along the coast of the Gulf of Mexico find that they have not caught nearly as many shrimp as the year before, due to an oil spill?
a. Movement along the supply curve
b. Shift in the supply curve
c. No change in supply or demand
d. Shift in the demand curve
Answer: b. Shift in the supply curve
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A substantial reduction in the rate of inflation is called:
A. inflation shock. B. hyperinflation. C. inflation inertia. D. disinflation.
It is easier to sustain tacit collusion in an infinitely repeated game if:
A. the interest rate is lower. B. the present value of cheating is higher and the interest rate is lower. C. the present value of cheating is higher. D. there are more players in the game.
Making effective monetary policy for the euro zone should be a relatively easy task for the European Central Bank (ECB) since the euro member countries are very similar.
Answer the following statement true (T) or false (F)
All else equal, if oil prices decrease, annual oil consumption will ________ and the years it will take to deplete the stock of oil will most likely ________
A) decrease; increase. B) decrease; decrease C) increase; increase D) increase; decrease