Answer the following statement(s) true (T) or false (F)
1. The consumer price index (CPI) tracks changes in price at the wholesale level.
2. Change in prices is an important economic indicator because it is a measurement of consumer's purchasing power.
3. Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow-, beach-, or holiday-related industries.
4. Higher productivity results in higher costs and higher prices, resulting in lower income and lower profitability.
5. A recession is a decline in the gross national product (GNP) over two or more consecutive quarters of the year.
1. False
2. True
3. False
4. False
5. False
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Decisions have history. The _________ Model shows the importance of reference groups
a. Re-invent b. Elbing c. Chain d. Central-satellite
The process of analyzing a problem in reverse-starting with the last choice, then the second-to-last choice, and so on, to determine the optimal strategy-is called:
A. backward induction. B. backward thinking. C. forward thinking. D. backward working.
Lawsuits can act as a barrier to entry in monopoly markets.
Answer the following statement true (T) or false (F)
A result of a positive externality in the production of a good is that
A) the price system will over-allocate resources to the production of that good or service. B) the price system will under-allocate resources to the production of that good or service. C) the market supply will be too high. D) the market demand will be too high.