Assume Congress holds a hearing on the impact of gasoline prices on the price of corn. Most likely, this hearing will be
A) a partial equilibrium analysis.
B) a general equilibrium analysis.
C) about consumer rather than producer surplus.
D) an analysis of efficiency.
A
You might also like to view...
Which of the following statements about the balance of payments accounts is CORRECT?
A) The current account must be greater than the capital and financial account. B) The sum of all three accounts is always zero. C) The official settlements account is typically larger than both the capital and financial account and the current account. D) Typically the capital and financial account is near zero because it equals the difference between the current account and the official settlements account.
A friend of yours asks you why market prices are better than government-determined prices. Because you understand economic principles, you say that market-determined prices are better because they generally reflect
a. the value of a good to society, but not the cost of making it. b. the cost of making a good to society, but not its value. c. both the value of a good to society and the cost of making it. d. neither the value of a good to society nor the cost of making it.
If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise.
Answer the following statement true (T) or false (F)
In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience:
A. Cost-push inflation and rising output B. Demand-pull inflation and rising output C. Cost-push inflation and falling output D. Demand-pull inflation and falling output