The prices of certain goods, such as ice and gasoline, often increase after a natural disaster such as a hurricane. The economic explanation for this observation is that
A) people panic in disaster situations.
B) disasters bring out the worst in people.
C) the disaster temporarily reduces the supply of the goods and increases the demand for the goods.
D) the disaster temporarily reduces the supply of the goods and reduces the demand for the goods.
C
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A factory recently added new robots to its production line, increasing productivity. This will likely cause a:
A. rightward shift of the supply curve. B. leftward shift of the supply curve. C. shift downward of the supply curve. D. movement up along the supply curve.
It does not make economic sense to maximize short run performance over long run performance
Indicate whether the statement is true or false
In 2011, the federal government spent 9 percent of the budget on net interest. Which of the following statements regarding net interest is correct?
a. If the government pays down its debt, the amount of the budget needed for net interest decreases. b. If the government accrues more debt, the amount of the budget needed for net interest increases. c. In 2011, the federal government spent 325 billion dollars to cover interest payments on its loans. d. All of the above are correct.
Programs to equalize individual income would most help ______.
a. medium-income single people b. low-income large families c. high-income married couples d. high-income single people