The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is a likely explanation?
A. Productivity has increased
B. Input prices have increased
C. There has been an increase in government spending
D. Government regulations have been reduced
B. Input prices have increased
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For resources with upward-sloping supply curves:
a. earnings consist solely of economic rent. b. earnings consist of both transfer earnings and economic rent. c. earnings are called transfer earnings. d. earnings are called dividends. e. earnings consist entirely of interest payments.
What are the externalities associated with education?
What will be an ideal response?
Barriers to entry enable many monopolists to
A. manipulate the government into providing special favors for themselves. B. make people buy more of a good than they really want. C. charge as high a price as they want. D. earn economic profits in the long run.
Use the following graph to answer the next question.
All else held constant, a leftward shift of the supply curve would ________.
A. increase the equilibrium quantity of euros B. cause a shortage of euros C. appreciate the dollar D. appreciate the euro