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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The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?
A) $3000 B) $19,000 C) $39,000 D) $59,000
The classical model explains away unemployment as a long-run problem by assuming that
a. coordination in labor markets will occur within an acceptable period of time b. the economy consists of multiple, coordinated sectors c. it causes firms to cut back on their long-run production plans d. what is a problem during one period will seem more like an opportunity for economic growth during another period e. higher saving will stimulate increased investment
In 2010, the combined expenditures of federal, state, and local governments in the United States were approximately 40 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?
What will be an ideal response?
Stan complains to his roommate that he never has enough time to finish all the homework he's assigned, and his roommate tells him to quiet down because the first of the three movies they've planned to watch that day has begun. Stan's behavior demonstrates which economic concept?
A. time inconsistency B. chronologically challenged behavior C. rational behavior D. time allocation