Price floors are
A. sometimes associated with surpluses.
B. always associated with surpluses.
C. sometimes associated with shortages.
D. always associated with shortages.
B. always associated with surpluses.
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If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in
A) accounting. B) being a chef. C) being a mechanic. D) opera singing.
Interest-rate risk results from:
A. bond prices being fixed over the life of the bond. B. a mismatch between an individual's investment horizon and a bond's maturity. C. inflation being uncertain. D. the fact that most people hold bonds until they mature.
Elasticity along a demand curve:
A. changes only when the demand curve is bowed in. B. changes only when the demand curve is bowed out. C. is constant if the demand curve is linear. D. changes when the demand curve is linear.
Comparing the AS-AD model and the Phillips curve, we see that
A) they both are graphed as a relationship between the rate of inflation and the unemployment rate. B) the AS-AD model uses the price level and the Phillips curve uses the rate of inflation. C) the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP. D) the AS-AD model uses the price level and the Phillips curve uses real GDP. E) the Phillips curve is graphed as a relationship between the price level and the unemployment rate.