A decrease in a supply of oil could ____
a) increase long-run aggregate-supply.
b) decrease long-run aggregate-supply.
c) have no impact on long-run aggregate-supply.
d) increase aggregate-demand.
Ans: b) decrease long-run aggregate-supply.
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Two countries, A and B, produce Good X. Which of the following statements is true of the trading price of Good X?
A) The trading price of Good X is less than the opportunity cost of producing the good in both nations. B) The trading price of Good X is greater than the opportunity cost of producing the good in both nations. C) The trading price of Good X lies between the opportunity costs of producing the good in both nations. D) The trading price of Good X is always equal to the opportunity cost of producing the good in Country A.
If consumers but not producers expect that the price of soda will rise in November, the
A) supply of soda in October will increase. B) demand for soda in October will decrease. C) demand for soda in October will increase. D) supply of soda in October will decrease.