A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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Refer to the scenario above. The hypothesis of the model is that:
A) college graduates will earn 80 percent more than high school graduates. B) college graduates will earn 200 percent more than high school graduates. C) college graduates will earn 107 percent more than high school graduates. D) college graduates will earn 275 percent more than high school graduates.
Assume you have a credit card balance of $2,000 at 15 percent and the inflation rate is 3 percent. What are the nominal and real interest rates?
A) 15 percent nominal and 12 percent real B) 12 percent nominal and 15 percent real C) 15 percent nominal and 3 percent real D) 3 percent nominal and 12 percent real E) 15 percent nominal and 18 percent real
With asymmetric information among consumers and positive search costs, a firm may
A) raise its price above the monopoly price. B) price at the monopoly level. C) price at the competitive level. D) None of the above.
The typical state spends the most on
a. education. b. Medicare and Social Security. c. highways. d. defense.