If people correctly anticipate that inflation will fall by 1%, then
a. the short-run Phillips curve shifts right and unemployment is unchanged.
b. the short-run Phillips curve shifts right and unemployment rises.
c. the short-run Phillips curve shifts left and unemployment is unchanged.
d. the short-run Phillips curve would shift left and unemployment falls.
c
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Lindahl pricing is not necessary for economic efficiency
a. True b. False
If we were to observe above-equilibrium wages in a particular labor market, then a possible explanation might be that
a. the theory of efficiency wages holds true for that market. b. there is a powerful labor union representing workers in that market. c. workers are largely unskilled and/or inexperienced and minimum-wage laws are effectively holding wages up in that market. d. All of the above are correct.
The law of diminishing marginal utility explains why:
A. supply curves slope upward. B. demand curves slope downward. C. addicts can never get enough. D. people will only consume their favorite goods and not try new things.
When a purely competitive firm is in long-run equilibrium, price is equal to:
A. Marginal cost, but may be greater or less than average cost B. Minimum average cost, and also to marginal cost C. Minimum average cost, but may be greater or less than marginal cost D. Marginal revenue, but may be greater or less than both average and marginal cost