The inflation associated with the oil price shocks in the 1970s after OPEC restricted the supply of oil is an example of
A) cost-push inflation due to a supply shock.
B) cost-push inflation due to a demand shock.
C) demand-pull inflation due to a demand shock.
D) demand-pull inflation due to a supply shock.
A
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Monopoly firms have a downward sloping curve in the short-run because
a. They have no close substitutes b. There are no barriers to entry c. They have no cost advantage over their rivals d. None of the above
If the supply of health care services is highly inelastic, programs that subsidize the cost of purchasing medical services will
a. lead to higher prices for medical services. b. lead to lower prices for medical services. c. not affect the price of medical services. d. help the buyers of medical services more than the sellers of those services.
Total cost can be divided into two types of costs:
a. fixed costs and variable costs. b. fixed costs and marginal costs. c. variable costs and marginal costs. d. average costs and marginal costs.
Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?