After a drop in nominal aggregate demand, if menu costs prevent firms from reducing prices, this is considered ________ act by firms ________ a "macroeconomic externality."
A) a rational, because it produces
B) a rational, that happens to produce
C) an irrational, because it produces
D) an irrational, that happens to produce
B
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The statement “Resources employed in producing X are better suited to making Y” is another way of saying
A. the production possibilities frontier is “bowed out.” B. the production possibilities frontier is a straight line. C. the production possibilities frontier is “bowed in.” D. resources are unproductive. E. resources have no opportunity cost.
In 2002, there were _____ school districts in the United States
a. fewer than 15,000 b. around 30,000 c. around 45,000 d. more than 60,000
What is suggested by a Lorenz curve diagram with a line very close to the 45-degree line?
a. A mostly equal income distribution b. A highly unequal income distribution c. Rising wage rates across all income levels d. Declining wage rates for the middle class
Figure 10-2
At which point in is the economy experiencing an economic recession?
a.
J
b.
I
c.
F
d.
H