When a temporary shock in the economy involves a restriction in supply ________

A) we refer to it as a negative supply shock
B) a rise in commodity prices typically follows
C) a reduction in output typically ensues
D) all of the above
E) none of the above


D

Economics

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A speculator may choose to buy a call option because

A) the possible gain is greater than with a futures contract. B) the potential loss on the call is limited to the premium, while the potential loss is unlimited with a futures contract. C) the possible gain with the option is great than the possible gain from buying the underlying stock itself. D) calls eliminate the risk of loss so a speculator can lose nothing or just make a gain.

Economics

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country A is:

A. 30 cars. B. 3 cars. C. 6 trucks. D. 5 cars.

Economics

Which of the following examples are substitutes in production?

a. shoes; polish b. 2 percent milk; cream c. baseballs; footballs d. crude oil; motor oil

Economics

What was the total for imports of goods in 2017?

a. -$2,361 billion b. -$1,183 billion c. $1,553 billion d. $1,537 billion

Economics