After a natural disaster, such as a hurricane, the increased demand for certain items (like lumber, electric generators, and chainsaws) causes their prices to rise. These higher prices
a. discourage the flow of these items into the area.
b. encourage consumers to purchase the items even if they do not plan to use them.
c. help to direct the items toward their highest valued uses.
d. do all of the above.
C
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Peaks and troughs of the business cycle are known collectively as
A) volatility. B) turning points. C) equilibrium points. D) real business cycle events.
If Slick Shades, a sunglasses manufacturer, purchases several local retail shops to sell their sunglasses, this is an example of ________.
A) divestiture B) forward integration C) backward integration D) outsourcing
Which of the following is a capital resource?
a. a new car bought by the Jones family b. a truck used in transporting school children to a soccer practice c. a truck used in transporting steel to an automobile factory d. hamburger meat used to produce a juicy hamburger on a home grill e. a sapling used to create a forest in a new national park
Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
a. place downward pressure on the prices of healthcare services. b. lead to higher healthcare prices. c. increase the incentive of consumers to economize on their purchases of healthcare services. d. increase the incentive of healthcare providers to provide their services at economical prices.