Which of the following statements best describes high-income economies’ relationship with inflation?
a. The high-income economies appear to have a political consensus to hold inflation low, but not the economic tools to do so.
b. The high-income economies appear to have the economic tools to hold inflation low, but not the political consensus to do so.
c. The high-income economies appear to have both a political consensus to hold inflation low, and the economic tools to do so.
d. The high-income economies do not appear to have a political consensus to hold inflation low, and the economic tools to do so.
c. The high-income economies appear to have both a political consensus to hold inflation low, and the economic tools to do so.
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If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.
In the long run in a perfectly competitive market, economic profit or loss is
a. the main determinant of total cost b. the main driving force determining consumer preferences c. the basis of all government policy d. the main driving force behind economic change e. expected to persist indefinitely
If Macroland's MPC is 0.8, then we know MPS = 1.8 from the relation MPS = 1 + MPC
Indicate whether the statement is true or false