A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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In a bilateral monopoly, the wage rate is likely to be ________ than the value of marginal product of labor and ________ than in a pure monopsony
A) lower; lower B) lower; higher C) higher; lower D) higher; higher
Risk-sharing forms of compensation are beneficial if employee are
A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.
In the short run, total output in an industry
A. is absolutely fixed. B. may be altered by varying the size of plant and equipment that now exist in the industry. C. can vary as the result of new firms entering or leaving the industry. D. can vary as the result of using a fixed amount of plant and equipment more or less intensively.
Suppose that televisions are produced both domestically and abroad. What would a ban on imported televisions do to the price of televisions, the quantity of televisions, and the output of the domestic television industry?
What will be an ideal response?