The long-run and short-run Phillips curves intersect where
a. the quantity of goods and services demanded equals the quantity supplied.
b. the quantity of labor demanded equals the quantity of labor supplied.
c. expected inflation is less than actual inflation.
d. expected inflation is greater than actual inflation.
e. expected inflation equals actual inflation.
Answer : e. expected inflation equals actual inflation.
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The principle of comparative advantage states that a product should be exported by
a. the country with the lowest dollar cost b. the country with the lowest labor cost c. the country with the lowest opportunity cost d. the country that has more of that product e. all of the above
Which of the following are monetary policy goals?
I. maintain high interest rates II. keep unemployment rates low III. reduce the size of the banking sector IV. prevent high rates of inflation A) I, II, III, and IV B) I, II, and III C) II, III, and IV D) II and IV
A portfolio of assets has lower risk than holding one asset, but the same expected return and higher transaction costs. Which of the following statements is most correct?
A. The portfolio is attractive to investors who are risk seekers. B. The portfolio is not attractive to investors who are risk-neutral. C. The portfolio is attractive to people who are risk-averse and risk-neutral, but not to risk seekers. D. The portfolio is attractive to investors who are risk-neutral.
What conditions are necessary to determine if the purely competitive firm should produce in the short run? State the marginal revenue and marginal cost conditions and the total revenue and total cost conditions
What will be an ideal response?