An adverse supply shock causes inflation to
a. rise and the short-run Phillips curve to shift right.
b. rise and the short-run Phillips curve to shift left.
c. fall and the short-run Phillips curve to shift right.
d. fall and the short-run Phillips curve to shift left.
a
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q237g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />To OPEC, the payoff to abiding by the agreement is either:
A. $60 million or $100 million.
B. $175 million or $185 million.
C. $150 million or $200 million.
D. $200 million or $185 million.
According to Friedman, the apparent conflict between cross-section data which shows a saving rate that varies with income group and time-series data which shows that the saving ratio over the past century is fairly constant is resolved by
A) pointing out that cross-section and time-series data are not comparable. B) interpreting the low saving of poor people as due to the fact that they must buy necessities. C) interpreting the high saving of rich people as due to the transitory nature of much income earned by the rich. D) distinguished between a permanent marginal propensity to consume and a transitory marginal propensity to consume.
According to the World View chart in the text, from highest to lowest real GDP, which is correct?
A. United States, China, Germany, Japan, Canada. B. United States, China, Japan, Germany, Britain. C. USA, China, Japan, Germany, Britain. D. United States, Japan, China, Germany, Britain.
Answer the following questions true (T) or false (F)
1. The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price. 2. The additional cost to a firm of producing one more unit of a good or service is equal to producer surplus. 3. The additional benefit to a consumer from consuming one more unit of a good or service is the marginal benefit.