An increase in energy costs will most likely cause the price level and rGDP to change in which of the following ways?
A) Increase/Increase
B) Increase/Decrease
C) Increase/No change
D) Decrease/Increase
E) Decrease/Decrease
Ans: B) Increase/Decrease
You might also like to view...
If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost. B) the price of the resource equals its opportunity cost. C) the price of the resource is above its opportunity cost. D) the resource has no opportunity cost.
Which of the following is an example of a permanent resource price differential?
a. When the price of oil increases, oil exploration increases. b. When the price of CDs falls, CD production decreases. c. When demand for land in a city increases, its price increases above prices of land elsewhere. d. When demand for computer programmers increased, more people went into that field. e. When the price of oil rose, demand for solar panels increased.
When an established domestic industry is in jeopardy of being displaced by lower-priced imports, then there could be a rationale for encouraging imports
Indicate whether the statement is true or false
The shape of the production possibilities curve in the figure above indicates that
A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs. B) production of both corn and cloth is characterized by increasing costs. C) production of both corn and cloth is characterized by constant costs. D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.