If we plot the quantity of aluminum ore mined per year on the horizontal axis and the real annual price of aluminum ore on the vertical axis, we find that the path of price-quantity combinations generally indicates lower real prices and higher
quantities over time. Which of the following statements is a plausible explanation for this observed outcome? A) Aluminum supply shifted leftward faster than the aluminum demand curve shifted rightward.
B) Aluminum supply shifted rightward faster than the aluminum demand curve shifted rightward.
C) Aluminum supply shifted rightward and aluminum demand remained constant.
D) both A and B above
E) both B and C above
E
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In the United States, (gross) investment has fluctuated between ________ of GNP in recent years
A) 2 and 12 percent B) 11 and 22 percent C) 22 and 32 percent D) 32 and 42 percent E) 42 and 52 percent
The forward exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a transfer of funds within a corporate entity D) crossing state lines
In the long run, all firms in a perfectly competitive industry
A) earn economic profits. B) break even. C) suffer economic losses. D) sell differentiated products to earn economic profits.
A reduction in the amount of farmable land inside a nation would cause the:
A. short-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. long-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.