A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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Refer to Table 4-8. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.00; Q = 390,000 B) W = $8.50; Q = 380,000 C) W = $10.00; Q = 390,000 D) W = $9.50; Q = 380,000
Measured as a share of national income, government expenditures on income transfers during the last 70 years have
What will be an ideal response?
Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality), how many plums (high quality) will be supplied by sellers?
A. 8 B. 12 C. 16 D. 22
As the distribution of income becomes more equal, the Lorenz curve comes closer to the 45-degree line.
Answer the following statement true (T) or false (F)