A price floor establishes a minimum price, and a price ceiling establishes a maximum price
Indicate whether the statement is true or false
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The primary method that decision makers use to evaluate choices among competing alternatives is called
A) the competitive forces model. B) cost-benefit analysis. C) heads-or-tails analysis. D) absolute advantage.
A fixed exchange rate, say, Mexican pesos per dollar, is determined by
a. U.S. consumers that buy Mexican exports b. the U.S. government c. U.S. businesses that export to Mexico d. the foreign exchange market e. the levels at which other exchange rates float
A movement to the right along a given short-run Phillips curve could be caused by
a. an increase in the natural rate of unemployment or expansionary monetary policy. b. expansionary monetary policy, but not an increase in the natural rate of unemployment. c. an increase in the natural rate of unemployment or a contractionary monetary policy. d. contractionary monetary policy, but not an increase in the natural rate of unemployment.
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
A. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. B. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. C. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. D. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.