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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Taxes cause:
a. Market distortions b. Reduce incentives to work c. Decrease wealth creating transactions d. All of the above
When the pricing of one product produced by a firm adversely affects the revenue earned by another product of the same firm, the second product has been
A) cannibalized. B) tied. C) bundled. D) sacrificed.
Which view of aggregate supply predicts that the outcomes of fiscal and monetary policy depend on how close the economy is to full employment?
A. The hybrid view. B. The monetarist view. C. The Keynesian view, the monetarist view, and the hybrid view. D. The Keynesian view.
Economics
A) is a social science. B) is concerned with limited resources. C) is concerned with unlimited wants. D) All of the above are correct.