If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock.
B. long-run supply shock.
C. short-run demand shock.
D. long-run demand shock.
B. long-run supply shock.
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Which of the following would not be expected to increase labor productivity?
A. Technological advance. B. The acquisition of more education and training by the labor force. C. An increase in the size of the labor force. D. The realization of economies of scale.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Profit is the factor price for ________
A) capital B) land C) entrepreneurship D) labor
If all consumers had identical preferences, then their marginal utility schedules would be the same
a. True b. False Indicate whether the statement is true or false