In the horizontal segment of the aggregate supply curve, when GDP:
a. increases, the price level rises.
b. decreases, the price level falls.
c. increases, the price level does not change.
d. increases, the price level falls.
e. increases, the price level first rises and then falls.
c
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Cash payments are generally preferable to in-kind payments when the utility of the transfer recipient is the only criterion because _____
a. it is cheaper to distribute in-kind benefits b. cash is necessary for utility maximization c. recipients know their utility functions better than anyone else d. of diminishing marginal utility
Happy Bagels sells its bagels for $6 each and the firm has a constant marginal cost of $4 per bagel, which is equal to its (constant) average total cost. If Happy Bagels does not sell a bagel the day it is produced, the bagel is sold as day-old for $2. If Happy Bagels is currently holding 50 bagels in inventory and the probability that Happy Bagels will sell 50 bagels or more is 0.60, which of
the following statements is true? A) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to increase its inventory. B) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to decrease its inventory by exactly one -half. C) To obtain the profit-maximizing, optimal level of inventory, Happy Bagels needs to decrease its inventory. D) Happy Bagels is holding the profit-maximizing, optimal level of inventory.
Someone who is underemployed is someone who:
A. is working in a job for which he is overqualified. B. is working part-time, but wants full-time employment. C. could be contributing more output to society by either working more, or by working using more advanced skills he possesses but doesn't currently use. D. All of these describe someone who is underemployed.
If a rise in the price x causes less y to be demanded:
a. x and y are gross complements. b. x and y are gross substitutes. c. x and y are net complements. d. x and y are net substitutes.