Which of the following is considered a negative supply shock?
A) increasing immigration in the economy causes the labor supply to rise
B) an improvement in technology
C) an increase in unemployment
D) an unexpected decrease in the refining capacity for oil
Answer: D
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As measured, GDP omits which of the following?
i. Illegal sales of goods and services ii. Changes in the amount of leisure time iii. Household production of goods and services A) i and ii B) ii and iii C) i only D) i, ii, and iii E) i and iii
In which of the following situations will the profit of a perfectly competitive firm always increase with an increases in its output?
a. When price is greater than marginal revenue b. When price is less than marginal revenue c. When price is greater than marginal cost d. When price is less than marginal cost e. When price is equal to marginal cost
Becky received a raise at work. She now substitutes Kraft Macaroni and Cheese for generic macaroni and cheese. Kraft Macaroni and Cheese is an example of:
a. Inferior Good b. Market Good c. Normal Good d. Brand Good
Suppose a new contracting environment that requires greater specialized investments is considered. This new contract will result in:
A. a decrease in the marginal benefit and a shorter optimal contract. B. a decrease in the marginal benefit and a longer optimal contract. C. an increase in the marginal benefit and a longer optimal contract. D. an increase in the marginal benefit and a shorter optimal contract.