Which of the following would be classified as a negative supply shock?
A. An increase in the legal minimum wage
B. A decrease in the price of oil
C. An increase in demand for exports
D. An increase in government purchases
Answer: A
You might also like to view...
In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue
A) decreases. B) is constant. C) increases. D) may increase or decrease.
Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force
How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?
A regressive tax
a. taxes individuals with higher incomes at a higher rate than individuals with lower incomes. b. takes a similar percentage of income at all income levels. c. takes a higher percentage of the income of those with lower incomes than for those with higher incomes. d. taxes savings at a higher rate than consumption.
According to one theory, advertising sends a signal to consumers about the quality of the product being offered. An implication of this theory is that
a. the actual quality of the product is irrelevant. b. the content of the advertisement is irrelevant. c. advertising is not in the best interest of society. d. it is irrational for firms to pay famous people large amounts of money to appear in their advertisements.