Which of the following can cause a leftward shift in the aggregate supply curve?
A. Lower marginal tax rates.
B. A major natural disaster such as hurricane or earthquake.
C. A bumper agricultural crop.
D. Trade liberalization.
Answer: B
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. At the efficient quantity, the minimum supply-price of a DVD is ________ and the value of a DVD is ________
A) $16; $24 B) $16; $20 C) $20; $16 D) $20; $20
In addition to fiscal policy, the other main tool used to affect aggregate demand is
a. trade policy. b. industrial policy. c. planning policy. d. monetary policy.
When production generates a negative externality, the true cost of production is the
A) private cost of production. B) public cost of production. C) social cost of production. D) average cost of production.
Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare?
What will be an ideal response?