The mid-point method of calculating elasticity is typically used because:
A. it is universally understood by all economists.
B. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement.
C. it is easier to calculate.
D. the negative sign can then be ignored.
Answer: B
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One would expect a shift down in the Phillips curve if there was a(n)
a. a decrease in aggregate demand. b. decrease in government spending. c. decrease in the money supply. d. a shift in aggregate supply to the left. e. Any of the above
The Samuelson-Solow version of the Phillips curve states that
A) there is an inverse relationship between the wage inflation rateand unemployment B) there is a direct relationship between the wage inflation rateand unemployment. C) there is an inverse relationship between price inflation andunemployment. D) there is a direct relationship between price inflation and unemployment. E) a and b
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What will be an ideal response?
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. Mexico has a comparative advantage in the production of tomatoes. B. The United States has a comparative advantage in the production of machinery. C. There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico. D. Mexico does not have an absolute advantage in the production of either good.