An abnormally large grain crop due to highly favorable weather conditions in the Midwest is an example of
a. a technological improvement that will increase long-run aggregate supply.
b. a supply shock that will increase short-run aggregate supply.
c. an unexpected development that will reduce the natural rate of unemployment.
d. an unexpected development that will lead to excess supply and widespread unemployment.
B
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Domestically produced goods and services sold to other countries are referred to as
A) imports. B) capital outflow. C) exports. D) transfer payments.
A minimum wage is the:
A. lowest wage that a firm is legally allowed to pay its workers. B. highest wage that a firm is legally obligated to pay its non-skilled labor. C. wage every high school dropout will earn if they are employed. D. prevailing wage for low-income workers in a nation.
Consider Figure 8.9. Relative to the dominant strategy outcome, guaranteed price fixing would lead to:
A. lower prices but higher profits. B. lower prices and lower profits. C. higher prices and higher profits. D. higher prices and lower profits.
Suppose that the marginal benefit per dollar spent on bicycles exceeds the marginal benefit per dollar spent on skateboards. The consumer can always increase their utility by buying:
A. more bicycles and fewer skateboards. B. fewer bicycles and more skateboards. C. more of both goods. D. The consumer is already maximizing utility.