A COLA is the cost associated with recalculating prices and printing new price lists when there is inflation. unanticipated negative inflation. unanticipated positive inflation. an automatic increase in wages that takes into account increases in the price level. QUESTION 46 During a recession incomes fall and unemployment falls. incomes rise and unemployment increases. incomes fall and unemployment increases. incomes rise and employment decreases. QUESTION 47 A severe and prolonged recession is called a slump. a stagnation. a trough. a depression. QUESTION 48 GDP measures the amount of underground activity in a nation. the changes in the unemployment rate in a given year. the nation's economic welfare. the nation's economic activity. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Which of the following would cause an increase in the market supply of drones? an increase in the cost of components used to make drones an increase in the number of firms making drones a decrease in the demand for drones an increase in taxes levied on drones QUESTION 18 A shortage exists at the market clearing price. when quantity supplied is less than quantity demanded. when quantity supplied is greater than quantity demanded. in equilibrium. QUESTION 19 A surplus occurs whenever price is above the equilibrium price. price is equal to the equilibrium price. price is below the equilibrium price. the supply curve is downward sloping. QUESTION 20 Market clearing price refers to a surplus. refers to a movement along the demand curve. refers to a supply curve. exists at a the point at which quantity demanded equals quantity supplied. A decrease in demand and a decrease in supply will lead to unambiguous increases in both price and quantity. unambiguous decreases in both price quantity. an unambiguous decrease in price, but the effect on quantity is indeterminate. an unambiguous decrease in quantity, but the effect on price is indeterminate. QUESTION 22 Ways to ration goods include first-come, first-served. political power. prices. All of these. QUESTION 23 A price ceiling is a nonprice rationing device. the lowest price a seller can charge without losing all of its customers. a legal minimum price below which a good or service cannot be sold. a legal price above which a good or service cannot be sold. QUESTION 24 An example of a black market is a discount market. scalping. a retail market. barter