An adverse supply shock would shift _____
What will be an ideal response?
both the long-run and the short-run aggregate supply curves inward.
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Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. Because firms face increasing marginal costs to reduce pollution, the demand curve for pollution permits will be:
A. downward sloping. B. perfectly inelastic. C. upward sloping. D. perfectly elastic.
A worker is unemployed if he:
A) has been working part-time and has been actively looking for full-time work. B) does not have a job and is not actively looking for a job. C) is working from home and drawing a weekly salary. D) does not have a job and has been actively looking for one in the prior four weeks and is available for work.
Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a computer in the United States is ________ while the opportunity cost of producing a computer in Mexico is ________
A) 0.8 bicycle; 2 computers B) 2.5 computers; 0.25 bicycle C) 0.5 bicycle; 0.2 bicycle D) 2 bicycles; 5 bicycles
In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. inflation. B. deflation. C. stagflation. D. hyperinflation.