In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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Countries in which wages adjust slowly to changes in the supply of and demand for labor are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a zero
Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
a. Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy. b. Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy. c. Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy. d. none of the above
Raquel, who earns $900 a week, bought a television set and gained $70 consumers' surplus. What price did she pay for the good?
A) $40 B) $830 C) $160 D) $5 E) There is not enough information to answer the question.
Refer to Figure 7-2. The market equilibrium price is
A) $60. B) $50. C) $40. D) < $40.