You read online that, at current rates of production, the yearly world supply of food is sufficient to feed the projected 2050 population of earth, but that after 2050 there will be massive starvation. This prediction appears to assume that:
A. the long-run supply of food is perfectly elastic.
B. the short-run supply of food is perfectly elastic.
C. the long-run supply of food is perfectly inelastic.
D. the short-run elasticity of supply of food is greater than long-run elasticity of supply.
Answer: C
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Under a fixed exchange rate system, if the inflation rate of the United States is less than the inflation rate of other nations, the
A) United States will develop a trade surplus. B) dollar will appreciate. C) United States will develop a trade deficit. D) dollar will depreciate.
Over the period 1960-2010, the United States economy grew at roughly
A) 2.1 percent. B) 3 percent. C) 4 percent. D) one percent. E) 3.5 percent.
For individuals, the maximum fine for a Sherman Act violation is ________ million and the maximum prison sentence is ________ years.
A) $2; 10 B) $1; 10 C) $2; 5 D) $1; 5
If government spending in a country declines by $10 billion and, at the same time, taxes increase by an equal amount, what is the total effect in the economy?
a. Equilibrium real GDP increases b. Equilibrium real GDP increases by $20 billion c. Equilibrium real GDP is unchanged d. Equilibrium real GDP decreases by more than $10 billion and less than $20 billion e. Equilibrium real GDP decreases by more than $20 billion