Which of the following is an example of a supply shock?
A. A surge in consumer optimism prompts increased buying of goods and services.
B. A surprise tax rebate from the government gives people more money to spend.
C. A dramatic increase in energy prices increases production costs for firms in the economy.
D. Government increases spending on education.
Answer: C
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Using the table above, if the current market value of the dollar is 70 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor A expects dollar depreciation, but B and C expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
Refer to Figure 4-1. Kendra's marginal benefit from consuming the third ice cream cone is
A) $13.00 B) $2.50 C) $1.50 D) $0.50
If there are no trade restrictions, a country will import a particular good if
a. domestic quantity supplied equals domestic quantity demanded at the world price b. there is excess domestic quantity demanded at the world price c. world quantity supplied is less than world quantity demanded d. world quantity supplied is greater than world quantity demanded e. domestic quantity supplied is greater than domestic quantity demanded at the world price
A reduction in an input price will cause a change in quantity supplied but not a change in supply
a. True b. False Indicate whether the statement is true or false