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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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
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.