A decrease in the price of foreign oil will affect the U.S. economy by
a. increasing aggregate demand.
b. decreasing aggregate demand.
c. increasing aggregate supply.
d. decreasing aggregate supply.
c
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Starting from long-run equilibrium, the long-run impact of a war that raises government purchases, compared to the original equilibrium, is:
A. higher inflation and higher output. B. lower inflation and the same output. C. lower inflation and lower output. D. higher inflation and the same output.
Under perfect price discrimination the monopolist produces ________ a perfectly competitive market.
A. the same amount of output as a non-discriminating monopolist as well as B. less output than an imperfectly price discriminating monopolist, but more than C. more output than an imperfectly price discriminating monopolist, but less than D. the same amount of output as would
If all firms had to bear all the social costs of their actions, we should observe marginal cost curves
A) of all firms shifting up. B) of some firms shifting up, of some others shifting down, and of the rest not shifting at all. C) of all firms that had generated externalities shifting up while there would be no change for the rest of the firms. D) of some firms shifting up and of the rest shifting down.
Based on the information above, video games have
a. A unitary elastic demand b. An inelastic demand c. An elastic demand d. A perfectly elastic demand