Other things being equal, a reorganization of the OPEC cartel to permit it to increase world oil prices by 70 percent would most likely have which effect?
A. It would shift the aggregate demand curve right.
B. It would shift the aggregate supply curve right.
C. It would shift the aggregate demand curve right and the aggregate supply curve left.
D. It would shift the aggregate supply curve left.
Answer: D
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Bob just got laid off and now has no income. We can assume that his demand for all:
A. all normal goods will increase. B. all inferior goods will increase. C. all inferior goods will decrease. D. all normal goods will stay the same.
"An objective of firms is to maximize profits". This statement:
a) has been proven by empirical testing to be always true. b) is a normative statement and thus cannot be tested. c) is an unrealistic assumption, and therefore of little use to economists d) is an assumption used by economists to predict the behaviour of firms. e) applies only to corporations
Which of the following was NOT one of the causes of the Asian financial crises of 1997 and 1998?
A) A current account deficit and financial account surpluses B) The use of exports as an engine of economic growth by the countries involved C) China's 1994 devaluation of its fixed exchange rate D) The appreciation of the U.S. dollar and depreciation of the Japanese yen
Refer to Table 11.1. At the equilibrium level of output, y*, what is the level of imports?
A) 266.25 B) 356.25 C) 1065.00 D) 1425.00