An economy in which output has decreased and prices have increased would suggest that there has been a:

A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.

Answer: B

Economics

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If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to take precautions that are not cost-justified

A) overestimated, overestimated B) overestimated; underestimated C) underestimated; overestimated D) underestimated; underestimated

Economics

Exhibit 7-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $    0 1   100     50 2   100     84 3   100   108 4   100   127 5   100   150 As shown in Exhibit 7-9, the total cost of producing 4 units is:

A. zero. B. $227. C. $250. D. $100.

Economics