A decrease in the price of oil will cause the:
A. short-run aggregate supply curve to shift to the right.
B. short-run aggregate supply curve to shift to the left.
C. aggregate demand curve to shift to the right.
D. long-run aggregate supply curve to shift to the left.
Answer: A
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A technique that can be employed to make a portfolio less risky than any of its individual securities is
A. plowback. B. diversification. C. programmed trading. D. speculation.
Which of the following is true? a. A majority of U.S. money, whether M1 or M2, is in the form of legal tender
b. If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000. c. Reserve requirements exist primarily to eliminate bank runs. d. When there are two forms of money available, people prefer to spend the form of money that is more valuable.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, Robin Smith is probably going to negotiate a salary of ________ per week, ________ of which is economic rent.
A. $500, $500 B. $400, $0 C. $475, $75 D. $500, $100
Supply-side economists advocate
A. A reduction in the incentives to save so that more income will be spent. B. An increase in transfer payments. C. The use of minimum wage laws to guarantee fair wages for workers. D. A reduction in structural unemployment through worker training.