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

Economics

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A) prove that the gains-from-trade arguments of the Ricardian model are false. B) may be a fact of life, but economists don't care. C) are facts emphasized by U.S. labor in its contract negotiations. D) prove that the gains-from-trade arguments of the Ricardian model are true. E) prove that international trade is exploitative.

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Indicate whether the statement is true or false

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Suppose a firm's short-run production function is given by Q = F(L) = 4L. If the wage rate is $12 and the firm has sunk costs of $300, then the firm's cost function is:

A. C(Q) = $12L. B. C(L) = $300 + $3L. C. C(Q) = $300 + $3Q. D. C(Q) = $300 + $12Q.

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Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

a. 160 b. 56 c. 8 d. None of the above is correct.

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