Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Figure 27.4Refer to Figure 27.4. Stagflation would not be caused by a
A. shift to the right of AD.
B. decrease in AS.
C. higher price level with lower output.
D. higher price level with higher unemployment.
Answer: A
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Which of the following may be sacrificed when pursuing growth policies?
a. Environmental regulations and air quality b. Anti-monopoly, pro-competitive legislation c. Safety net programs such as food stamps d. All of the above e. Technological progress
Network externalities:
A. can explain why more efficient technologies displace less efficient technologies. B. can explain why technological lock-in no longer occurs. C. can explain why the economy fails to adopt the most efficient technologies. D. reduce the cost of switching to new technologies without network externalities.
Comparing a set of feasible alternatives and picking the best one is an optimization process called? _________.
A. statistical inference B. likelihood estimation C. cost-benefit analysis. D. normative analysis.
The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.