There is an inverse relationship between inflation and unemployment in the short run and this can be seen as an
A. example of the equality-efficiency trade-off.
B. example of the impact of comparative advantage.
C. example of macroeconomic policy choices.
D. example of an externality.
E. example of the use of abstraction in economic analysis.
Answer: C
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The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in the quantity demanded?
A) 22.2 percent B) 10.0 percent C) 15.5 percent D) 5.2 percent E) 25 percent
Accountants and Economists differ in their calculations of profits in that the former consider
a. sunk costs b. implicit costs only c. explicit costs only d. fixed costs
The product life cycle theory of comparative advantage predicts that a new product will be first produced and exported by:
a. the nation that first demanded the new product. b. the first firm to successfully copy the technology. c. the nation in which it was invented. d. the countries with the most stable economies and the fewest restrictions on foreign trade. e. the company with the most extensive network of international distributors for the product.
In foreign exchange markets, the demand for dollars is determined: a. solely by the level of U.S. merchandise exports
b. solely by the level of U.S. merchandise imports. c. by the level of U.S. imports and the demand for foreign assets by U.S. citizens and the U.S. government. d. by the level of U.S. exports and the demand for U.S. assets by foreigners.