The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an
a. inward shift of the aggregate demand curve.
b. outward shift of the aggregate supply curve.
c. inward shift of the aggregate supply curve.
d. outward shift of the aggregate demand curve.
c
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When economic profits are zero, accounting profits are most likely:
A. zero. B. negative. C. positive. D. All of these are likely.
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed in the table. CustomerReservation Price($/Rental)A22B16C12D8E6F4Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes can charge a different price in the morning and in the afternoon, then in the afternoon, it will rent out ________ bike(s) and charge ________ per bike.
A. 3; $4 B. 5; $10 C. 1; $8 D. 2; $6
As additional firms enter an industry, the market supply curve
A. shifts to the left. B. shifts to the right. C. remains the same. D. none of the statements associated with this question are correct.
A major complaint of DVCs about foreign aid from IACs is that it:
A. Is allocated just to the poorest nations B. Is equally borne by the donor nations C. Needs to be quantitatively larger for DVCs D. Takes too long a time to reach DVCs