In the short run, a reduction in the price of oil will cause
A) a reduction in output.
B) an increase in the price level.
C) a reduction in the interest rate.
D) all of the above
E) none of the above
C
You might also like to view...
Lunch in Jamie's dorm is an all-you-can-eat buffet, served from 11 a.m. until 1 p.m. By noon, the buffet is picked over, and by 12:30, there are very few popular items left. The garbage bins, though, are full of food. If the cafeteria changed its policy so that students had to pay for each item chosen, students would:
A. encounter shortages earlier in the day. B. select only the most expensive items in the buffet. C. make the same selections as before, but eat more of what they select. D. only select an item if its marginal benefit is greater than or equal to its price.
The substitution effect can be defined as:
A. the change in consumption that results from a change in the relative price of goods. B. the change in income that results from increased effective consumption due to lower prices C. the change in consumption that results from increased effective wealth due to lower prices. D. the change in consumption that results from increased effective wealth due to getting a raise.
Which of the following is the correct way to calculate marginal utility per dollar?
a. Total utility/price b. Change in total utility/price c. Marginal utility/price d. Quantity/price
Exhibit 7-3 Cost per unit curves
?
In Exhibit 7-3, if the price of the firm's product is $2.00 per unit, the firm will produce:
A. 5 units per day. B. 10 units per day. C. 15 units per day. D. 20 units per day.