As wages and prices become more sticky ________
A) the short-run Phillips curve gets flatter
B) wages become less responsive to unemployment deviations from the natural rate
C) it becomes easier to differentiate the short-run from the long-run Phillips curve
D) all of the above
E) none of the above
D
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Adding wages, interest, rent, and profits yields
A) net domestic product at factor cost. B) gross domestic product at factor cost. C) total expenditure. D) GNP. E) gross domestic product.
Compared to the purely competitive firm, a pure monopoly:
A. will always become competitive in the long run because positive economic profits will induce competitors into the market. B. is efficient from society's perspective because it has big plants and it uses the newest possible production technology. C. is able to use barriers to entry and maintain positive economic profits in the long run. D. produces an equal amount of output but charges higher prices to cover all costs in the market.
Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. If the market price is $15, this firm should produce ________ units of output to maximize profits.
A. three B. four C. five D. six
Policies designed to promote import substitution often encouraged labor-intensive production methods, which encouraged the creation of jobs.
Answer the following statement true (T) or false (F)