Author Question: All else equal, as the price of oil falls, potential profits from producing oil ________ which ... (Read 136 times)

nramada · **on:** Jun 29, 2018

All else equal, as the price of oil falls, potential profits from producing oil ________ which ________ oil companies to look for additional sources of oil.

A) increase; encourages
B) increase; discourages
C) decrease; encourages
D) decrease; discourages

Question 2

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?

A) no impact at all
B) The level of unemployment would decrease so the production possibilities frontier would shift outward.
C) The nation would move to a new position on its production possibilities frontier but the frontier itself would not shift.
D) The production possibilities frontier would shift inward.
E) The number of young workers would increase so the production possibilities frontier would shift outward.