Make the case that the United States is not running out of oil or energy
What will be an ideal response?
One concern people have about energy is whether the economy is running out of the energy, particularly oil. Economists do not worry about this matter because they know that as the price of oil rises, alternative sources of energy become economically viable. And as technology improves, the cost of producing such alternatives falls, bringing forth more energy production.
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The aggregate expenditure model predicts a business cycle expansion occurs when
A) the aggregate planned expenditure curve shifts downward. B) aggregate supply increases. C) induced expenditure decreases. D) autonomous expenditure increases. E) potential GDP increases.
Marginal revenue product is measured in dollars per unit of output
a. True b. False
Assume that crackers and soup are complementary goods. The effect on the soup market of an increase in the price of crackers (other things being equal) would best be described as a(n):
a. decrease in the quantity of soup demanded. b. decrease in the demand for soup. c. increase in the quantity of soup demanded. d. increase in the demand for soup.
Which of the following statements is true?
A. Production of low-pollution products like clothing increases in the industrialized countries due to free trade. B. Shifts toward freer trade are responsible for the majority of the increase in carbon dioxide emissions. C. Free trade is inherently anti-environment. D. Relocation of firms to take advantage of lax environmental laws is small.