A temporary increase in the price of oil would
A) increase both short-run and long-run aggregate supply.
B) decrease both short-run and long-run aggregate supply.
C) increase short-run aggregate supply and decrease long-run aggregate supply.
D) decrease short-run aggregate supply and leave long-run aggregate supply unchanged.
D
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If the food stamp program in the United States moved from coupons redeemable for food to cash payments,
A) everyone would buy less food and more of other goods. B) everyone would buy more food and less of other goods. C) some people might buy less food and obtain a higher level of utility. D) some people might buy less food and obtain a lower level of utility.
Moral hazard and adverse selection are both examples of
a. the principal-agent problem. b. externalities in consumption. c. efficiency in markets. d. perfect information. e. asymmetric information.