Demand-pull inflation is associated with:
A. decreasing total spending (demand).
B. increasing total spending (demand).
C. decreasing costs of production (supply).
D. increasing costs of production (supply).
Answer: B
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Labor unions in the United States
a. tend to be more outspoken politically than those in Europe. b. have experienced steady declines in membership since the 1950s. c. tend to be more powerful in deregulated industries (for example, airlines) than in regulated industries. d. universally support socialist principles.
The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
As a result of this embargo, the exporting countries not participating in the embargo gain Area
A. a. B. b. C. c. D. (b + c).
Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6
Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is
A. 1. B. 2. C. 3. D. indeterminate from this information.
In perfect competition, P = MC is the condition that
A. holds only in the long run. B. encourages firms to enter an industry. C. guarantees that firms will make an economic profit. D. ensures that firms produce the right things.