An inferior good is a good for which demand
A) decreases when income increases.
B) increases when income increases.
C) decreases when population increases.
D) increases when population increases.
A
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The natural rate of unemployment is also called:
A) non-accelerating inflation rate of unemployment. B) accelerating inflation rate of unemployment. C) accelerating deflation rate of unemployment. D) none of the above.
Time inconsistency will cause the
a. short-run Phillips curve to be higher than otherwise. b. short-run Phillips curve to be lower the otherwise. c. long-run Phillips curve to be farther to the right than otherwise. d. long-run Phillips curve to be farther left than otherwise.
In the production of bicycles an increase of 2 percent in the level of capital and labor respectively will generate an increase of 1 percent in the production of bicycles. From this information we know that the production of bicycles exhibits
A. decreasing returns to scale. B. increasing returns to scale. C. constant returns to scale. D. diminishing marginal returns.
The fact that returns from the stock market are less volatile over long-periods of time suggests that:
A. stock market bubbles have become more common. B. stock markets are efficient. C. people get comfortable with the stocks they own. D. investors are more risk averse over the longrun.