Allocative efficiency best explains ________, and productive efficiency best explains ________
A) why something will be produced; what will be produced
B) what will be produced; how something will be produced
C) how something will be produced; when something will be produced
D) when something will be produced; why something will be produced
B
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When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________
A) decreases; increases B) decreases; decreases C) increases; decreases D) does not change; does not change E) increases; increases
A cutthroat competitor will not lower their price because they believe that
A. their competitors will lower their prices too. B. their competitors will raise their prices. C. they will lose money. D. they will be accused of unfair competition.
What do economists mean by the term "sticky wage"?
A. It refers to the reluctance by employers to increase nominal wages during an inflationary period. B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. C. It refers to a breakdown in wage negotiations between employers and employee unions. D. It refers to a union negotiated wage.
Consider a two-good world, with commodities X and Y. If X is an inferior good, then an increase in consumer income cannot:
A. decrease the demand for X. B. increase the demand for Y. C. decrease the demand for Y. D. make the consumer better off.