When a temporary shock in the economy involves a restriction in supply ________
A) we refer to it as a negative supply shock
B) a rise in commodity prices typically follows
C) a reduction in output typically ensues
D) all of the above
E) none of the above
D
You might also like to view...
In Spain, people are considered organ donors unless the explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.
When the loss from a business-stealing externality exceeds the gain from a product-variety externality,
a. firms are more likely to operate at efficient scale. b. there are likely to be too many firms in a monopolistically competitive market. c. market efficiency is likely to be enhanced by the entry of new firms. d. all firms are earning zero economic profit.