A short-lived increase in oil prices caused by destruction of oil-producing and oil-refining facilities by a large hurricane will
A) shift the SRAS curve to the right. B) shift the AD curve to the right.
C) shift the SRAS curve to the left. D) shift the LRAS curve to the right.
C
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In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy. B) a surplus of loanable funds. C) a shortage of loanable funds. D) a shortage in available funds for investment.
Which of the following is an example of an oligopolistic market structure?
a. public utilities b. air transport industry c. liquor retailers d. wheat farmers e. none of the above
Economic efficiency requires all Pareto improvements to be made
a. True b. False
Suppose a perfectly competitive firm's marginal revenue is $10 and its marginal cost is $11. Under these circumstances the firm:
A. needs to know the market price before it can determine whether it is maximizing profit. B. is not maximizing profit and should increase output. C. is maximizing profit and should not change output. D. is not maximizing profit and should reduce output.