According to the Philips curve diagram, if a central bank takes action to reduce the inflation rate, unemployment is
a. higher in the short-run and the long-run.
b. higher in the short-run only.
c. lower in the short-run and the long-run.
d. lower in the short-run only.
b
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Robert got a new job and relocated to a different city. He initially decided to rent a small apartment close to his office
However, he decided to live in a much bigger and costlier apartment when he found out that his employer will pay him a house rent allowance. This is an example of ________. A) adverse selection B) moral hazard C) the prisoners' dilemma D) the free-rider problem
During the past 100 years, the United States has transformed into primarily
A. A manufacturing economy. B. A service economy. C. A closed economy with little foreign trade. D. An agricultural economy.
An efficient allocation of productive inputs requires that:
a. each output has the same rate of technical substitution among inputs used. b. each output has the same marginal rate of substitution for consumers. c. each pair of outputs has the same rate of product transformation. d. each individual has the same marginal rate of substitution between outputs.
A perfectly elastic demand:
A. is demonstrated by a vertical demand curve. B. has a price elasticity of -1. C. means consumers are extremely sensitive to a change in price. D. means quantity demanded is unchanged if the price changes by any amount.