The Long-Run Phillips Curve is vertical, suggesting that ________
A) allowing inflation to rise will not succeed in keeping unemployment low
B) changes in unemployment have no lasting impact on inflation
C) shifts of the short-run Phillips curve impact inflation, but have no effect on unemployment
D) all of the above
E) none of the above
A
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Referring to Figure 2.1,if you increase the production of farm goods, what other area is affected?
A) how much people can purchase B) the production of manufactured goods C) the wages earned by farm workers D) the price of produce
Marginal revenue is the addition to a firm’s revenue from
A. a $1 change in price. B. a one-unit change in output. C. the sale of inferior output. D. a $1 reduction in marginal cost.
Insurance companies charge annual premiums to collect revenue, which they then use to pay customers who file claims for damages they incur. As a result of the moral hazard problem (1) what is the effect on the percentage of policy holders making claims, and (2) what is the effect on the average premium charged when compared to a world with no moral hazard problem?
a. The percentage of policy holders making claims is higher; average annual premiums are lower. b. The percentage of policy holders making claims is lower; average annual premiums are lower. c. The percentage of policy holders making claims is higher; average annual premiums are higher. d. The percentage of policy holders making claims is lower; average annual premiums are higher.
When a firm shuts down in the short run, it breaks even.
Answer the following statement true (T) or false (F)