A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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According to Figure 12.1, if the economy moves from point C to point A because of increased government spending, the amount of private spending crowded out is equal to the distance
A. BD. B. BC. C. AB. D. AC.
The price of a McDonald's dinner is $5; the price of a Burger King dinner is $5. The marginal utility you would get from the next McDonald's dinner is 15; the marginal utility you would get from the next Burger King dinner is 20. You should:
A. consume more Burger King dinners. B. consume more McDonald's dinners. C. not consume either Burger King or McDonald's dinners. D. realize you cannot make a rational decision.
Recall the Application. Assume that immediately before the housing bubble burst, you purchased a $250,000 home and took out a $225,000 mortgage to make the purchase. When the bubble burst, the value of your home fell by 20 percent
The value of the home is now ________ and you owe the mortgage company ________. A) $180,000; $225,000 B) $200,000; $180,000 C) $200,000; $225,000 D) $180,000; $200,000
The World Trade Organization (WTO) is an international organization dedicated to erecting trade barriers between nations
Indicate whether the statement is true or false