The equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), where a is a positive number, represents
a. an upward-sloping short-run aggregate supply curve
b. a vertical short-run aggregate supply curve
c. a downward-sloping aggregate demand curve
d. None of the above is correct.
a
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Which of the following tools is used to compare the income per capita across countries?
A) Purchasing power parity B) The headcount index C) The GDP deflator D) Production possibilities frontier
Diffusion of responsibility exists when
A) the members of a group believe one thing but mistakenly assume that most of the other members believe something else. B) a group of bystanders all agree that something needs to be done but each feels less personal responsibility for taking action because each perceives that there are others who could take action. C) a majority of people in a group do not have the intellectual capacity of arriving at a viable solution to a public goods problem. D) the least-capable member of a group exerts his influence over the rest of the group when trying to arrive at a decision on how to internalize an externality.
Charging drivers with good records lower premiums than drivers with bad records is an example of an attempt by insurance companies to deal with the problem of
A) moral hazard. B) adverse selection. C) drunk driving. D) failure of policyholders to keep paying their premiums.
Unemployment caused by an imbalance between the skills possessed by workers and the skills demanded in labor markets is known as
a. structural unemployment. b. imbalance unemployment. c. frictional unemployment. d. cyclical unemployment.