A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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A game in which each player has a dominant strategy of defecting, and each ends up worse off than if they had both cooperated is called
A) a pure coordination game. B) a prisoner's dilemma game. C) an assurance game. D) a battle of the sexes game.
If an asset has a 0.7 probability of yielding 10 percent and a 0.3 probability of yielding 20 percent, the expected yield of the asset is
A) 30 percent. B) 20 percent. C) 13 percent. D) 10 percent.
Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade 4 cookies for an additional ounce of milk
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies. B) Rita will give some milk to Joe in exchange for cookies. C) No trade will take place since they both prefer to have more milk and fewer cookies. D) There is not enough information to make any predictions.
The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:
a. securely defined property rights. b. adopting modern technology. c. significant capital formation. d. abundant domestic natural resources.