As the U.S. labor force grows and the nation’s capital stock is augmented by investment, the
A. price level will rise.
B. aggregate supply curve shifts inward.
C. aggregate supply curve shifts outward.
D. aggregate supply curve becomes steeper.
Answer: C
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The people of Andres, a small fishing village in a country, are facing extremely difficult times as their source of livelihood is threatened. Unregulated by the government, the coastline was subject to overfishing for a long time, adversely affecting the stock of fish. The variety of fish has declined and it takes much longer to haul in a decent catch these days. People in Andres are worried that
they may have to migrate to other areas or look for alternative sources to earn a living. Which of the following is most similar to this scenario? a. Oil producers hoard the extracted oil to increase prices. b. Public highways get congested because they are nonexclusive. c. Poaching of the Javan rhino for its priced horns in unprotected forest belts of Indonesia has led to its near extinction. d. People in Jinbong village now have to pay to be able to fish in the local pond. e. A farmer shifts from potato to corn cultivation because the latter offers more profits.
Inflation is defined as the sustained increase in relative prices
a. True b. False Indicate whether the statement is true or false
Quick conclusions about real per student spending should be made with care because
A. more money is devoted education generally, but an increasing share is spent on special education. B. less money is spent on special education and less is also spent on everything else. C. more money is spent on non-instructional spending and less is spent on instructional spending. D. more money is spent on special education and less is spent on everything else.
What is the drawback of forcing a natural monopolist to use a marginal cost pricing rule?
A) No deadweight loss is eliminated. B) The firm will incur an economic loss. C) The gain in consumer surplus will be less than the loss in producer surplus, thus creating additional deadweight loss. D) None of the above answers is correct.