Demand-pull inflation and cost-push inflation both lead to a higher price level and lower output.
Answer the following statement true (T) or false (F)
False
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Which of the following clearly restricts competition?
A) A government policy restricting entry into the market B) A government policy that reduces tariffs on foreign imports C) A business sets price below cost. D) A business sets price above cost. E) Any business pricing scheme that successfully draws customers away from its rivals
Taxes impact incentives to use resources since they distort relative prices
Indicate whether the statement is true or false
Assume that Chile can produce one pound of coffee or 40 pillows in an hour, and that the United States can produce one pound of coffee or 20 pillows in an hour,
a. the terms of trade should be between 20 and 40 pillows per pound of coffee, and the United States should produce both coffee and pillows b. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce pillows c. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce coffee d. the terms of trade should exceed 40 pillows per pound of coffee, and Chile should produce coffee e. no trade will occur, since the United States does not have an absolute advantage in producing either good
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. The total output of this firm will cease to expand:
A. if a labor force in excess of Q 1 is employed.
B. if a labor force in excess of Q 2 is employed.
C. if a labor force in excess of Q 3 is employed.
D. only if the marginal product curve becomes negative at all levels of output.