Unexpectedly high inflation reduces unemployment in the short run, but as inflation expectations adjust the unemployment rate returns to its natural rate
a. True
b. False
Indicate whether the statement is true or false
True
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Economists say that the economy is at "full employment" when the
A) total unemployment rate is zero. B) structural unemployment rate is zero. C) cyclical unemployment rate is zero. D) frictional unemployment rate is zero.
Addictive substances such as tobacco have long-run demand that is more ______ than short-run demand. In other words, the consumption of addictive substances ______ price sensitive and raising prices ______ reduce consumption over time.
a. price elastic; is; will b. price inelastic; is; will c. price inelastic; is not; will not d. price elastic; is not; will not
Figure 7-17
Which of the following statements must be true when a firm makes choices that put it at point A in Figure 7-17?
a.
The firm is minimizing its cost of producing 100 units of output.
b.
The ratio of the marginal physical products of labor and of land equals the ratio of the prices of labor and of land.
c.
The firm first decided how much output to produce and then decided how to produce it.
d.
All of the above are true.
We refer to situations in which individuals need to act collectively to reach solutions that will make everyone better off as:
A. collective-action problems. B. moral hazard problems. C. free-rider problems. D. public-mind problems.