A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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Which of the following statements is an example of normative economic analysis?
A) Pollution regulations have raised the cost of production for energy companies. B) As the wage rate increases, companies are hiring fewer workers. C) Improvements in technology have reduced the time needed to manufacture automobiles. D) Tablet computers should be manufactured in countries that do not restrict internet access to their citizens.
The table below shows data for Indonesia between 2005 and 2006
2005 2006 Money growth rate 21.4 12.0 Real GDP growth rate 5.7 5.5 Assume the rate of velocity change is constant. According to the quantity theory of money, Indonesia's inflation rate A) is higher in 2005 than in 2006. B) was 17.5 percent in 2006. C) is 27.1 percent in 2005. D) will increase over the 12 months.
Which of the following is held constant along an indifference curve?
A) the prices of the goods in question B) the total utility derived from consuming any bundle of goods on the indifference curve C) the marginal rate of substitution between the two goods in question D) the marginal utility derived from consuming any bundle of goods on the indifference curve
Roberto consumes Coke exclusively. He claims that there is a clear taste difference and that competing brands of cola leave an unsavory taste in his mouth. In a blind taste test, Roberto is found to prefer Coke to store-brand cola eight out of ten times. The results of Roberto's taste test would refute claims by critics of brand names that
a. consumers are always willing to pay more for brand names. b. brand names cause consumers to perceive differences that do not really exist. c. consumers with the lowest levels of income are the most likely to be influenced by brand name advertising. d. brand names are a form of socially efficient advertising.