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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As a means of dealing with pollution, do economists generally prefer corrective taxes or do they prefer regulations?
By selecting a bundle where MRS = MRT, the consumer is saying
A) "I value my last unit of each good equally." B) "I am willing to trade one good for the other at the same rate that I am required to do so." C) "I will equate the amounts spent on all goods consumed." D) All of the above.
An increase in wages in the public sector is caused solely by increased labor productivity in that sector
a. True b. False Indicate whether the statement is true or false
Table 36-2 ? Domestic ? ? ? GDP Expenditure ? Exports Imports Total Expenditures (Y) C+ I + G (X) (IM) C+ I + G + (X?IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ In Table 36-2, assume that exports rise to $900. How large is the multiplier?
A. 5 B. 4 C. 2.5 D. 2