The short-run Phillips Curve intersects the long-run Phillips Curve at the:
A. Nominal rate of interest
B. Current rate of inflation
C. Real interest rate
D. Natural rate of unemployment
D. Natural rate of unemployment
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Why is the study of asymmetric information associated with the market for "lemons"?
A) Potential buyers of used cars have difficulty separating good used cars from bad used cars; bad used cars are often referred to as "lemons." B) Because there is little advertising in the market for lemons, buyers have difficulty determining the quality of lemons before they are purchased. C) Sellers of citrus fruit — lemons, oranges, grapefruit — know the difference between bad fruit and good fruit; buyers do not have this information. D) Most sellers of used cars have less information about their cars than the dealers who buy them; used cars are often referred to as "lemons."
The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good
a. True b. False Indicate whether the statement is true or false
The underground economy
A. consists mainly of such involuntary transfer payments as savings and loan fraud and bank robberies. B. consists only of illegal activities such as prostitution, loan-sharking, and narcotics. C. is a very stable percentage of GDP. D. causes GDP to be underestimated by 10 to 15 percent.
If there is a shortage of nurses, it is expected that
a. wages for nurses will go up as hospitals try to fill these positions. b. wages for nurses will go down because of the increased competition between hospitals. c. the return on the human capital investment of current nursing majors will decline. d. wages for nurses currently practicing will increase, but new nurses will experience lower wages in the future.