If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.40 and is 2.25 other days of the year. If Rosie's Roses faces a constant marginal cost of $2 per rose, what is the profit-maximizing off-peak load price to charge on days not on the week of Valentine's Day?
A) $7.00 B) $5.80 C) $2.50 D) $3.60
The three welfare goals: adequate income, work incentives, and minimize costs are irreconcilable
Indicate whether the statement is true or false
The distribution of income in a market economy is determined by
A. the level of employment and prices of the factors of production. B. the prices of factors of production. C. largely unknown forces, which economists seek to discover. D. decisions of government offices related to distribution.
With respect to the market clearing price and the equilibrium quantity of good B, increases in the demand for and the supply of good B will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of B. B) reduce the market clearing price and the equilibrium quantity of good B. C) increase the market clearing price and the equilibrium quantity of good B. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of B.