When the economy responds to a supply shock, there is ________ in the short run and ________ in the long run between inflation and unemployment
A) an inverse relationship; no trade-off
B) no trade-off; an inverse relationship
C) an inverse relationship; an inverse relationship
D) no trade-off; no trade-off
D
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In an inflationary environment, then over time
A) a specific tariff will tend to raise more revenue than an ad valorem tariff. B) an ad valorem tariff will tend to raise more revenue than a specific tariff. C) an optimum tariff will tend to raise more revenue than an escalating tariff. D) a tariff quota will tend to raise more revenue than a specific tariff. E) an import quota would raise more revenue than a specific tariff.
Moral hazard and adverse selection are both examples of
a. the principal-agent problem. b. externalities in consumption. c. efficiency in markets. d. perfect information. e. asymmetric information.
In perfect competition:
a) Short run supernormal profits are competed away by firms leaving the industry. b) Short run supernormal profits are competed away by firms entering the industry. c) Short run supernormal profits are competed away by the government. d) Short run supernormal profits are competed away by greater advertising.
In a debate on the state of the economy Senator X pointed out that the unemployment rates for teenagers, blacks, and hispanics had increased over the last year, while Senator Y stated that the unemployment rate in the United States was at its lowest level in more than 30 years. In this example, aggregate data is being used by:
A. both senators. B. Senator X. C. neither senators. D. Senator Y.