In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?
a. It would shift the supply curve to the right.
b. It would shift the supply curve to the left.
c. It would shift the demand curve to the left.
d. It would shift the demand curve to the right.
B
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Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:
a. socially responsible funds. b. index funds. c. equity funds. d. fixed-income funds. e. money market funds.
For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be
a. an increase in real output and a decrease in the general level of prices. b. a decrease in real output and an increase in the general level of prices. c. a decrease in both the general level of prices and real output. d. an increase in both the general level of prices and real output.
What are the four justifications for government intervention in the economy? Describe two in detail, providing an example of each.
What will be an ideal response?
If China decides to enact laws to clean up the environment, what would be the effect on GDP?
A) GDP would increase reflecting the fact that the environment would be cleaner. B) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls. C) GDP would increase as the citizens of China were made happier as the environment was cleaned up. D) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP.