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

Economics

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If a government action is designed to achieve efficiency, then the action must have the market produce the amount of output so that the

A) marginal private cost equals the marginal private benefit. B) marginal social cost equals the marginal social benefit. C) marginal external cost equals the marginal external benefit. D) marginal private cost equals the tax. E) marginal social benefit exceeds the marginal social cost by as much as possible.

Economics

The slope of the demand curve conveys all the useful information about elasticity.

Answer the following statement true (T) or false (F)

Economics

Most stock market experts agree that monetary policy

A) has virtually no impact on stock prices. B) has a minor impact on stock prices. C) has a significant impact on stock prices. D) is the only determinant of stock prices.

Economics

Which of the following has overseen the global rules of government policy toward international trade since 1995?

A. The World Trade Organization B. The General Agreement on Tariffs and Trade C. The World Bank D. The International Monetary Fund

Economics