The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
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To improve package delivery, one change UPS made involved improvements in how packages were routed. The firm started using more detailed maps to plan the routes for packages
As a result, the typical delivery driver could travel several miles less per day while delivering more packages. Which of the following statements best describes this change at UPS? A) The firm is able to produce more output (deliver more packages) using the same number of inputs (trucks and drivers). Therefore, UPS has implemented a positive technological change. B) Technological change refers only to the introduction of new products or improvements to existing products. As such, the scenario described in the question is not technological change. C) The change implemented is not an example of technological change because it did not require the use of new machinery or equipment. D) The scenario described is an example of management efficiency and not technological change. Essentially, the chain changed its way of operating its business.
The marketing of the first ballpoint pen by Milton Reynolds showed
A) that being the first firm to market a new product can result in a natural monopoly. B) that first-mover advantages can make it more difficult for new firms to enter a market and compete against the first mover. C) how important it is to receive patent protection for a new product. D) that being the first firm to market a product may not lead to a long-lived advantage over later entrants into the market.
Which of the following statements is not an example of the use of persuasion to correct (or adjust for) an externality?
A. Maggie asks her neighbor to keep his dog quiet at night. B. An environmental group conducts a sit-in at a chemical factory to demand that the firm stop polluting rivers. C. A judicial court imposes a fine on a reckless driver. D. All of the above are examples of the use of persuasion to correct (or adjust for) an externality.
An increase in government spending shifts the PPF
A) upward, but does not change its slope. B) upward, and also changes its slope. C) downward, but does not change its slope. D) downward, and also changes its slope.