High energy prices in the 1970s created a ______.
a. positive supply shock
b. negative supply shock
c. period of deflation
d. period of low unemployment
b. negative supply shock
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The leader in a Stackelberg oligopoly with a linear demand and marginal cost produces ________ than the follower second firm, charges ________ price, and earns ________ than the follower in economic profit.
A) more; the same; more B) more; a higher; less C) less; the same; more D) more; a higher; more
According to the principle of egalitarianism:
A. society should place equal weight on the well-being of every individual. B. society should place all weight on the well-being of its worst-off member. C. society should place all weight on the well-being of its best-off member. D. equal division of society's resources among all members of the population is the most equitable outcome.
Perfectly competitive markets are characterized by: a. rivalry in product design
b. competition in terms of product quality. c. attempts by sellers to outdo one another with good service. d. none of the above.
Suppose the equilibrium level of national income is $800 billion and the MPC is 0.8 . Suppose as well that people decide to increase their saving by $30 billion. Before this change, people intended to save $100 billion and producers intended to invest $100 billion. The new equilibrium level of national income is
a. $600 billion b. $650 billion c. $680 billion d. $730 billion e. $800 billion