Chapter 12. Supply Shocks Versus Demand Shocks

EIA Activity: Supply Shocks Versus Demand Shocks

1. Question

   Use Link 1 to answer the following questions. Which of the following types of shocks can come in the form of an overnight technological advancement that can improve labor productivity and return on capital?

   A.

   Positive demand shock

   B.

   Positive supply shock

   C.

   Negative demand shock

   D.

   Negative supply shock

2. Question

   Hurricane Katrina’s negative impact on the oil and gasoline industry is an example of which of the following?

   A.

   Negative demand shock

   B.

   Negative supply shock

   C.

   Positive demand shock

   D.

   Positive supply shock

3. Question

   A new, less expensive substitute for an expensive production input is an example of which of the following?

   A.

   Positive supply shock

   B.

   Positive demand shock

   C.

   Negative demand shock

   D.

   Negative supply shock

4. Question

   True or False: Demand shocks can occur due to changes in consumer preferences.

   A.

   True.

   B.

   False.

5. Question

   Which of the following types of shocks can cause a lower quantity of goods to be consumed?

   A.

   Negative supply shock

   B.

   Positive demand shock

   C.

   Negative demand shock

   D.

   Positive supply shock

6. Question

   Discuss some of the devastating effects that Hurricane Katrina had on the Gulf States, and the U.S. economy in general.

   Your response will be graded by your instructor.

   Discuss some of the devastating effects that Hurricane Katrina had on the Gulf States, and the U.S. economy in general.

• Point per question: 1pts for short answer 1pts for multiple choice
• number of attempts on quiz as a whole: 1 or unlimited?
• set which score reports to Gradebook: first, most recent, highest, or average
• Randomize answers (for multiple choice questions only)? Yes or no