The economy will move to a point on the short-run Phillips curve where unemployment is higher if
a. the inflation rate decreases.
b. the government increases its expenditures.
c. the Fed increases the money supply.
d. None of the above is correct.
a
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What is the efficient quantity of snowboards in the above figure?
A) 0 B) 100 C) 200 D) 500
The above figure shows a graph of the market for pizzas in a large town. As a result of concern over the affordability of pizza, the government restricts sellers from charging a price over $7. As a result, the quantity of pizzas consumed will
A) increase. B) decrease. C) remain unchanged. D) be indeterminable.
In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A. increase. B. become negative. C. decrease. D. become zero.
In the economic way of thinking, all ignorance is ultimately
A) rational ignorance. B) irrational. C) inefficient. D) unjust. E) selfish.