A temporary decrease in the price of oil would be considered a:

A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.


Answer: C

Economics

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If two investments, X and Y, have the same expected return an individual investor would prefer:

a. the one with a higher standard deviation. b. the one with a higher mean. c. the one with a lower correlation coefficient. d. the one with a lower variance.

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Marginal thinking is best demonstrated by: a. choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made with animal skins or furs

c. acquiring all the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.

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The business cycle refers to fluctuations in economic activity such as employment and production

a. True b. False Indicate whether the statement is true or false

Economics