If economic fluctuations originate on the supply side,
A. there will be no relationship between unemployment and inflation.
B. real wage increases will be necessary to eliminate unemployment.
C. inflation and unemployment will be negatively related.
D. inflation and unemployment will be positively related.
Answer: D
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Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are wary of competing retailers' ability to "free ride" on their efforts d. All of the above
What does the natural-rate hypothesis claim?
The quantity demanded is the amount households wish to purchase
A. at all possible prices during a specified period of time. B. at all possible prices (the timeframe is irrelevant). C. at a particular price (the timeframe is irrelevant). D. at a particular price during a specified period of time.
Which of the following is an example of an external cost?
A. the opportunity cost of getting a college education B. the cost of tires for your car C. the cost of labor to a firm D. the pollution caused by automobile exhaust