The effect of the September 11 attacks on the World Trade Center on the market for office space in downtown Manhattan was that both the equilibrium price and the equilibrium quantity fell. What is the most likely explanation for this?
A) Supply and demand both shifted left, and the magnitude of the demand shift was greater.
B) Supply and demand both shifted left, and the magnitude of the supply shift was greater.
C) Supply shifted left, demand shifted right, and the magnitude of the demand shift was greater.
D) Supply shifted left, demand shifted right, and the magnitude of the supply shift was greater.
A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
In U.S. v. Addyston Pipe and Steel Company (1898), the Supreme Court ruled that
a. horizontal mergers were a violation of the Sherman Act. b. vertical mergers were a violation of the Sherman Act. c. collusive agreements among competing firms were a violation of the Sherman Act. d. mergers that created "corporate monoliths" were a violation of the Sherman Act.
Increases in productivity are caused by
a. better education and training of the labor force. b. higher levels of literacy. c. improvements in technology. d. All of the above are correct.
If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of shelter along the PPC, which of the following is true?
a. We cannot change the production of food. b. We must decrease the production of food. This forgone food production represents the opportunity cost of the increase in shelter. c. We also increase the production of food. d. The concept of opportunity cost does not apply along PPC.