One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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Economic growth focuses on ____________, utility focuses on ____________, and the capabilities approach focuses on __________________.
A. human development; individual pleasure; output B. output; human development, individual pleasure C. output; individual pleasure; human development D. human development, output, individual pleasure
National saving is saving by:
A. households for retirement. B. the government. C. households and firms. D. the entire economy.
According to the law of diminishing marginal utility, the marginal utility curve is
A. vertical B. flat. C. upward sloping. D. downward sloping.
Natural monopolies enjoy strong economies of scale, and so as output increases:
A. average costs are continually falling. B. average costs are continually rising. C. marginal costs are continually rising. D. marginal revenue is continually falling.