A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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Which of the following will NOT shift an economy's production possibilities curve outward?
A. an increase in technology B. an improvement in the literacy rate C. a reduction in the unemployment rate D. an increase in the number of workers available
At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor
a. True b. False Indicate whether the statement is true or false
Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Together, Eldin and Murphy can paint five houses per week. What is Murphy's marginal product?
a. 2 houses b. 3 houses c. 5 houses d. 8 houses
When people are deciding whether to deposit money in a bank:
A. people don't accurately account for the risk of losing savings. B. they will deposit the same amount in response to any given interest rate. C. everyone will respond exactly the same to any given interest rate. D. some people will require a higher interest rate to deposit the same amount of money.