A year-long drought that destroys most wheat crops for the season would shift the:
A. aggregate demand curve only.
B. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
C. short-run aggregate supply curve only.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
C. short-run aggregate supply curve only.
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The board of education of a school district faced with a surplus of teachers, but unable to lower salaries because of union contracts, will
A) be unable to balance the quantity supplied with the quantity demanded. B) have to hire fewer teachers than it wants to. C) have to hire more teachers than it wants to. D) tend to have relatively few young teachers on its payroll.
Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of
A) $450. B) $500. C) $600. D) $700.
Which of the following is true of the relationship between price and marginal cost under monopolistic competition?
a. P = MC at all levels of output b. P = MC only at the profit-maximizing quantity c. P > MC at the profit-maximizing quantity d. P < MC at the profit-maximizing quantity e. P < MC at the quantities below the profit-maximizing quantity
Welfare economics is the study of how
a. the allocation of resources affects economic well-being. b. a price ceiling compares to a price floor. c. the government helps poor people. d. a consumer's optimal choice affects her demand curve.