If a labor union strike significantly reduced the supply of coffee for all the coffee producers in a country, which of the following would most likely happen, as shown in this graph?
a. Q2 would move to Q1
b. Q1 would move to Q2
c. P2 would move to P1
d. P2 would remain constant
b. Q1 would move to Q2
You might also like to view...
On a diagram of a production possibilities frontier, opportunity cost is represented by the slope of the production possibilities frontier
Indicate whether the statement is true or false
In the short run in the Keynesian model, an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________
A) rise; rise B) fall; rise C) rise; fall D) fall; fall
You are about to open a business and must obtain a license from the city for $25,000. The license is transferable, but only $4,000 is refundable in the event the firm does not use the license.
a. What are your fixed costs? What are your sunk costs? b. Suppose the manager obtains a license but then decides against opening the business. If another firm offers the manager $3,000 for the license, should the manager accept the offer?
The interest rate that banks charge one another for the loan of excess reserves is the:
A. Prime interest rate B. Federal funds rate C. Discount rate D. Interest on reserves