An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
One of the benefits of specialization is
A) greater output. B) people enjoy doing one repetitive task over and over. C) specialists cost less to hire. D) training costs are higher.
According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system. b. more prevalent in countries with modern banking systems. c. more prevalent in agricultural countries. d. less prevalent in those countries with modern banking systems.
If hiring more workers results in each additional worker contributing successively smaller amounts of output, then which of the following is present?
a. diminishing profitability b. diminishing total product c. diminishing marginal product d. Both b and c are correct.