A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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A trade policy that allows a country to gain at the expense of other countries is called
A) countervailing duty policy. B) a beggar-thy-neighbor policy. C) an antitrust policy. D) a dumping policy.
Which of the following identifies an advantage of first differencing a time-series?
A. First differencing eliminates most of the serial correlation. B. First differencing eliminates most of the heteroskedastcicty. C. First differencing eliminates most of the multicollinearity. D. First differencing eliminates the possibility of spurious regression.
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. If a check for $14,000 is drawn and cleared against this bank, its reserves and checkable deposits will be, respectively:
A. $36,000 and $106,000. B. $50,000 and $106,000. C. $36,000 and $120,000. D. $50,000 and $120,000.
Figure 5.4 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 50, the total cost is:
A. $2,100. B. $2,800. C. $4,500. D. $6,300.