If there is a shortage of product X:
A. the price of the product will rise.
B. the price of the product will decline.
C. the supply curve will shift to the left and the demand curve to the right, eliminating the shortage.
D. fewer resources will be allocated to the production of this good in the future.
Answer: A
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In 1981 Fed policy created a severe recession because the Fed
A) publicly announced an inflation increase program. B) undertook an unexpected increase in the inflation rate. C) undertook an unexpected reduction in the inflation rate. D) publicly announced an inflation reduction program. E) increased aggregate supply to reduce the inflation rate.
The highest valued alternative that must be given up to engage in an activity is the definition of
A) marginal cost. B) marginal benefit. C) opportunity cost. D) economic equity.
Which of the following would cause the labor demand curve to shift to the right?
A) a decrease in demand for the product the labor is used to produce B) an increase in labor productivity C) a decrease in the price of a complimentary resource D) all of the above
Total revenue increases if price ________ and demand is ________.
A. falls; elastic B. falls; inelastic C. rises; unit elastic D. rises; elastic