What does the idea of a trade-off between inflation and unemployment mean?
(a) That lower inflation could be established but only at the cost of higher unemployment
(b) That lower unemployment could be achieved but only at the cost of more government spending
(c) That lower inflation could be established but only at the cost of lower unemployment
(d) That lower unemployment could be achieved but only at the cost of lower inflation rates
(a)
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What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves. B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector. C) Individuals act within the political process to improve their own individual well-being. D) Resources in the public sector are not scarce.
What type of market has few sellers?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
Markets often generate negative externalities because
a. there are too many participants in the marketplace b. property rights are sometimes poorly defined c. identifying pollution sources isn't easy d. free riders are hard to control e. social benefits have not been internalized
Average total cost is increasing whenever
a. total cost is increasing. b. marginal cost is increasing. c. marginal cost is less than average total cost. d. marginal cost is greater than average total cost.