Which of the following does the long-run Phillips curve tell us?
a. That output can be below potential in the long run
b. That the unemployment rate can take on any value in the long run
c. That output can be maintained above potential in the long run
d. That unemployment will return to the natural rate in the long run
e. That the inflation rate cannot rise above 10 percent in the long run
D
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For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces
Which of the following is true about the comparative advantage between the two countries? A) Australia has the comparative advantage in producing surfboards. B) New Zealand has the comparative advantage in producing surfboards and boomerangs. C) Australia has the comparative advantage in producing boomerangs. D) New Zealand has the comparative advantage in producing boomerangs.
We would expect the demand for jeans to be:
A. the same as the demand for clothing. B. more elastic than the demand for clothing. C. less elastic than the demand for clothing. D. neither more elastic, less elastic, nor the same elasticity as that of the demand for clothing.
Monetary policy includes changing the level of household taxes.
Answer the following statement true (T) or false (F)
A firm earns a profit if
A. price equals marginal cost. B. total revenue equals total fixed costs. C. total revenue exceeds the total cost of production. D. price is less than the total cost of production.