When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Which of the following is TRUE about the World Bank?
A) It is a multinational agency that specializes in development loans. B) It is a U.S. agency that specializes in development loans. C) It is a U.N. sponsored agency that specializes in development loans. D) It is made up of all central banks in the world.
An outward shift of the production possibilities frontier
a. reflects economic stability b. reflects economic growth c. reflects economic decline d. does not relate to the state of the economy e. is always a parallel shift
A binding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price
a. (i) only b. (iii) only c. (i) and (iii) only d. (ii) and (iv) only
The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the
a. total revenue product of the resource. b. marginal product of the resource. c. marginal revenue product of the resource. d. average revenue product of the resource.