If resource prices are "sticky" downward and a recessionary gap develops, the short-run aggregate supply curve will:
a. shift leftward to return the economy to its potential output
b. shift rightward to return the economy to its potential output.
c. become a horizontal straight line.
d. not shift rightward to return the economy to its potential output.
e. become the long-run aggregate supply curve.
d
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Economics is generally concerned with
A. the operation of banks and the stock market. B. business management. C. how resources are allocated among alternative goals. D. the right time to start a business.
Refer to the scenario above. If the investor plans to invest a sum of $4,000, the net present value of Option B is:
A) -$1,536.34. B) -$2,322.12. C) $157.46. D) $1,800.79.
Economic theory suggests that the standard of living of American workers would rise if
a. the minimum wage were doubled. b. automation were outlawed. c. workers were forced to retire earlier. d. technological improvements increased output per worker-hour.
The tragedy of the commons refers to:
a. the plight of the common people, who are doomed to low paying jobs and discrimination. b. the fact that public resources are becoming scarce. c. the idea that what we have in common is often not why we trade. d. the idea that when everyone has free access to a resource, it will be overused and depleted.