When OPEC raised the price of crude oil in the 1970s, it caused the
a. supply of gasoline to decrease.
b. quantity of gasoline demanded to decrease.
c. equilibrium price of gasoline to increase.
d. All of the above are correct.
d
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Of the 2.2 million working farms in the U.S., _________ of them produce more than $5,000 worth of agricultural products.
A. one quarter B. half C. three quarters D. one third
One of the following is not a characteristic of perfect competition. Which is it?
a. Firms advertise to increase their market share. b. Profits are low in the long run. c. Consumers pay little attention to brand names. d. Firms pay no attention to their competitors' output levels.
Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savings account, which was earning 3% interest, and borrowed an additional $4,000 from the bank at an interest rate of 7%. What is Gwen's annual opportunity cost of the financial capital that has been invested in the business?
a. $60 b. $280 c. $340 d. $660
According to classical economists
A. Demand stimulus is needed to produce full employment. B. Unemployment will not be a serious problem in a market economy. C. Say's law is not valid. D. Wage levels are always "sticky."