Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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In the above figure, the profit-maximizing rate of production for the perfectly competitive firm is
A) 5. B) 10. C) 13. D) none of the above.
Which one of the following will not cause the production possibilities curve to shift outward?
a. improvements in the stock of land b. increased educational opportunities c. a very low birth rate d. increased entrepreneurial activity
According to the text, why would firms in an industry follow the price leadership of another firm?
a. fear of retribution from the price leader if they don't follow b. smaller firms do not have the resources to determine optimal price c. the price chosen by the leading firm is the optimal one for all d. profit will be distributed in accordance with firms' market share e. every firm in the industry has confidence the leading firm will act for the benefit of all firms
From the point of view of the United States, exports are
A. goods and services produced in foreign countries and sold in the United States. B. goods and services produced in foreign countries by U.S. companies. C. goods and services produced in foreign countries by foreign companies. D. goods and services produced in the United States and sold outside the United States.