If the price level is increasing and output is falling, which of the following could be the reason?
a. A negative demand shock
b. A positive supply shock
c. A positive supply shock combined with a positive demand shock
d. A negative supply shock
e. A positive demand shock
D
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Use the following figure to answer the question below.
Dave's opportunity cost of producing 1 pound of green beans is ________ pound(s) of corn.
A. 1/2 B. 4 C. 2 D. 1
Interest is the payment for the use of: a. borrowed funds
b. natural resources. c. labor. d. any factor of production.
Compared to a perfectly competitive firm, a monopolist
a. is less likely to advertise. b. will, according to Schumpeter, invest fewer resources in research and development. c. usually produces an inefficiently small level of output. d. is less likely to face government regulation.
If a federal gasoline tax of $1 per gallon goes into effect, in an attempt to promote conservation of energy, the result would be to
A. increase both equilibrium price and quantity for gasoline. B. decrease both equilibrium price and quantity for gasoline. C. increase the equilibrium price and decrease the equilibrium quantity for gasoline. D. decrease the equilibrium price and decrease the equilibrium quantity for gasoline.