A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?
A. 2,000 B. 1,333.34 C. 1,000 D. 4,000
On any given day we know a salesman can earn $0 with a 40% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0. B) $140. C) $300. D) It cannot be determined from the available information.
Which of the following is a leading business cycle indicator?
a. The unemployment rate. b. The volume of outstanding commercial loans. c. New building permits. d. Personal income.
Appreciation of the euro relative to the dollar means that the
A. dollar price of the euro has fallen. B. euro price of gold has risen. C. euro prices of U.S. goods exported to the nation's that adopted the euro as its currency have fallen. D. euro is cheaper for Americans.