A shift of the supply curve of oil raises the price from $60 a barrel to $75 a barrel and reduces the quantity demanded from 40 million to 20 million barrels a day. You can conclude that the
A) demand for oil is elastic.
B) demand for oil is inelastic.
C) supply of oil is elastic.
D) supply of oil is inelastic.
A
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Which of the following is not a part of U.S. GDP?
A. The value of a BMW imported from Germany B. The commissions earned by a BMW dealership in the United States C. The value of a BMW produced in the United States D. The payments for an insurance policy on an old BMW sold by a U.S. company
A peak in the business cycle:
A. is a temporary maximum point. B. occurs when the inflation rate is its lowest. C. occurs when the unemployment rate is its greatest. D. is a temporary minimum point.
The New Keynesian model, is Keynesian in that ________
A) it assumes wages and prices are sticky B) changes in the money supply are taken to be the single most important influence on business movements C) the velocity of money is a constant D) expectations are assumed to be rational
A firm's implicit costs are
a. its maintenance costs b. its paid-out costs of production c. its main source of executive costs d. irrelevant to the determination of economic profit e. opportunity costs of production that do not involve money outlays