Assuming that GDP currently equals potential GDP, a cost-push inflation could result from which of the following?
A. a decrease in tax rates
B. an increase in the labor force
C. a large crop failure that boosts the prices of raw food materials
D. an increase in the nation's capital stock
Ans: C. a large crop failure that boosts the prices of raw food materials
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Use the following graph to answer the next question.
In the diagram, the economy's short-run AS curve is line ________ and its long-run AS curve is line ________.
A. 2; 1 B. 3; 4 C. 1; 3 D. 2; 4
Who from among the following is counted as employed?
A. Ray wants to work forty hours per week, but can only find work for twenty hours per week. B. Aikira has been offered several jobs in the past four weeks, but has chosen not to accept any of the offers. C. Frank would like to work, but has not looked for work because he believes no jobs are available. D. Anna Marie spends all of her time taking care of her children at home.
Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's grandmother buy for her?
A. Six lollipops and three candy bars. B. Two lollipops and two candy bars. C. Three lollipops and two candy bars. D. One lollipop and three candy bars.
"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false