If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) incentives. D) the big tradeoff.
The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.
Most U.S. imports are
a. manufactured goods b. agricultural services c. petroleum and related products d. minerals such as bauxite and nickel e. military goods
A consumer expenditure survey reports the following information on consumer protein spending: 20052006 PriceQuantityPriceQuantityFish$55$77Chicken$310$412Beef$67$510Using 2005 as the base year, by how much does a "cost of protein" index increase between 2005 and 2006?
A. 8.6 percent B. 5.2 percent C. 14.3 percent D. 13.4 percent