A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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Who benefits from international trade? Who loses?
In the short run, if a perfectly competitive firm is unable to earn a profit, it will seek out the quantity of output where: a. its costs of production are minimum
b. its losses are the smallest. c. its price is greater than its marginal revenue. d. its price is the lowest compared to its competitors.
efer to Figure 8.8. This farmer's profit-maximizing level of output is __________ units of output. A) 200 B) 700 C) 1,000 D) 1,400
What is an effect of a tariff on steel imports to the United States?
A. U.S. consumers benefit from the increased production of better-quality steel in the United States. B. U.S. steel workers lose because the increase in the price of steel results in decreased production and unemployment in the steel industry. C. Foreign consumers benefit from the effective world-wide increase in the price of steel. D. U.S. steel producers benefit as the product's price rises and domestic production increases.