The natural rate hypothesis concludes that the inflation rate increases, then in the short run there is
A) a downward movement along the short-run Phillips curve.
B) an upward movement along the short-run Phillips curve.
C) no change at all in the short-run Phillips curve.
D) an upward shift of the short-run Phillips curve.
E) a downward shift of the short-run Phillips curve.
B
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An inferior good is one for which
a. the compensated demand curve fails to be downward sloping. b. higher prices have relatively little effect on the quantity demanded. c. the income elasticity is positive but less than 1. d. increases in income result in lower quantities demanded.
The above table has data from the nation of Atlantica. Based on these data, autonomous consumption is
A) $5.8 trillion. B) $1.8 trillion. C) $2.6 trillion. D) $3.2 trillion. E) $4.0 trillion.
The above table depicts output from a firm that manufactures computers. The computers sell for $1,000 each. What is the marginal revenue product (MRP) for the fourteenth worker per week?
A) 90 units B) 80 units C) $70,000 D) $60,000
Which of the following problems associated with asymmetric information can be avoided by using a product warranty?
a. Lemons problem b. Problem of adverse selection c. Moral Hazard d. Problem of blind sight