One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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Refer to Table 7-5. Fill in the following table with the opportunity costs of producing bows and arrows for Tran and Farah
Pens Pencils Tran Farah
Which of the following would not be classified as an oligopolistic industry?
A) Defense contractors. B) The recorded music industry. C) The tobacco industry. D) The women's clothing industry.
Eliza Doolittle hasn't worked in years, and doesn't intend to. What can we clearly conclude about Eliza?
A) She's lazy. B) She's a parasite on society. C) She's not employed. D) She's unemployed. E) All of above are true.
When a firm faces a downward-sloping demand curve, marginal revenue
A) must exceed price because the price effect outweighs the output effect. B) must exceed price because the output effect outweighs the price effect. C) is less than price because a firm must lower its price to sell more. D) equals price because the firm sells a standardized product.