What are three causes of supply-side inflation?
What will be an ideal response?
Shifting the LRAS to the left can be caused by any of the following factors: a reduction in the labor force, a reduction in the labor force participation rate, higher marginal taxes on businesses, and government programs which act as incentives for unemployed workers to not go back to work.
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The figure above illustrates a small country's production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer
A) 4 tablets B) 5/4 of a tablet C) 4/5 of a tablet D) 1/4 of a tablet E) 1 computer
If a firm has a U-shaped long-run average cost curve,
A. its fixed cost rises as output rises. B. it must have increasing returns to scale at low levels of production and decreasing returns to scale at high levels of production. C. it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production. D. the firm can maximize its output by operating at the point of minimum long-run average cost.
Starting a fishing business
a. is safe because the price of fish is stable b. requires little prior knowledge c. involves no significant entry costs d. is a risky way to make a living e. does not involve opportunity costs
In discussing trade, it is ____ that matters rather than ____
a. absolute advantage: elastic advantage b. comparative advantage; absolute advantage c. entire advantage; comparative advantage d. elastic advantage; entire advantage e. declarative advantage; absolute advantage