While hurricane Katrina severely disrupted the normal flow of economic activity in the Gulf Coast States in 2005, in the periods following the hurricane
a. the price level fell below 100
b. unemployment in the U.S. spiked
c. aggregate demand increased, sparked by the need for reconstruction
d. real GDP fell to 1980's levels
e. imports rose dramatically
C
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The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible
a. True b. False Indicate whether the statement is true or false
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Why does the marginal cost of producing crude oil increase as the volume of crude oil increases?
A. The different costs reflect the higher costs of extracting oil at different sources. B. The different costs reflect the different costs of transporting oil to the United States. C. The different costs reflect the higher taxes that the government imposes on higher production of oil. D. The different costs reflect the different exchange rates needed to buy the oil from different countries.
If technological change occurs in the economy
A) the long-run aggregate supply curve will shift to the right. B) the long-run aggregate supply curve will shift to the left. C) we will move up along the long-run aggregate supply curve. D) we will move down along the long-run aggregate supply curve.
Which of the following is an example of a final good or service?
A. lumber purchased by a construction company to bin used in building houses B. wheat a bakery purchases to make bread C. coffee beans Starbucks purchases to make coffee D. a computer purchased by Federal Express to track shipments