Refer to the above diagram. If aggregate supply shifts from AS1 to AS3, then real domestic output will:
A. increase and the price level will increase.
B. decrease and the price level will decrease.
C. increase and the price level will decrease.
D. decrease and the price level will increase.
Answer: C
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Raising an existing tariff on grapes from Chile will: a. increase U.S. imports of Chilean grapes
b. decrease U.S. consumption of domestically produced grapes. c. decrease total U.S. consumption of grapes. d. do all of the above.
The money for Social Security payments to current retirees comes from
a. payroll taxes collected from those retirees when they were working. b. income taxes collected from the current working population. c. payroll taxes collected from the current working population. d. only the interest earned now by the government on the invested Social Security trust fund.
Suppose the government passes laws that require restaurants to disclose the nutritional content of their menu items. This would be an example of a:
A. nudge. B. flawed assumption. C. shadow price. D. push.
Economies of scope
A) is a situation in which it is more expensive to produce goods separately than jointly. B) is the opposite of economies of scale. C) occur whenever only one good is produced at a time. D) are an example of the gains from specialization.