In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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Consumers who place a high value on a good are better off with pricing in the following order: 1)________; 2)________; 3)________
A) competitive market; perfect price discrimination; single-price monopoly B) competitive market; single-price monopoly; perfect price discrimination C) single-price monopoly; competitive market; perfect price discrimination D) Unable to determine.
The production possibilities frontier represents all desirable combinations of two goods
a. True b. False
Real business cycle theorists emphasize
a. the large number of minor, unconnected technological changes and their randomness, and these are not factors generating a business cycle b. the small number of technological changes that clustered together trigger the business cycle c. the evenness (or absence of any variations) in the economy's full employment growth path d. the static and uncompetitive nature of the economy, which explains the failure of the economy to generate full employment e. that technological change is irrelevant in a modern industrial society
Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of
a. structural and frictional unemployment. b. cyclical and frictional unemployment. c. structural and cyclical unemployment. d. structural, frictional, and cyclical unemployment.