An adverse supply shock, such as a reduced supply of raw materials, would
A. decrease the marginal product of labor.
B. decrease the marginal product of capital, but have no effect on the marginal product of labor.
C. increase the marginal product of labor.
D. not affect the marginal product of labor.
Answer: A
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
A(n) ________ is represented by a leftward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve
A) increase in demand; decrease in quantity demanded B) decrease in demand; increase in demand C) decrease in demand; increase in quantity demanded D) decrease in quantity demanded; decrease in demand
When you see a preview of a coming movie at the movie theater, this is
A) informational advertising. B) direct market advertising. C) indirect market advertising. D) persuasive advertising.
An administered price is a price
a. set by overall demand and supply. b. established by a seller. c. set by the government. d. determined through collective bargaining.