In the Phillips curve equation, which of the following will cause a reduction in the current inflation rate?
A) a reduction in the expected inflation rate
B) an increase in the unemployment rate
C) a reduction in the markup, m
D) all of the above
E) none of the above
D
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When the marginal revenue product of an input is less than its price, the
A. producer should expand the use of that input. B. price of the input will automatically rise in a free market. C. producer should reduce the use of that input. D. marginal physical product of that input must be below its average physical product.
Suppose a consumer's expected utility function given two possible states of nature A and B can be expressed in terms of consumption of food, F, in both states as U(FA, FB) = [0.6 × ln(FA)] + [0.4 × ln(FB)]. For this utility function, MUA is (0.6/FA) and MUB is (0.4/FB). Without insurance, the consumer can consume 200 in state A but only 50 in state B. The consumer can purchase insurance at a premium of 50 cents per dollar of benefit. Which of the following gives her budget line?
A. FA = 250 - FB B. FB = 250 - FA C. FA = 200 - FB D. FB = 50 - FA
A document demonstrating ownership interest in a company is called a
a. contract b. bond c. stock d. lien e. none of these
Which of the following refers to efforts by businesses that focus on improvements in production technologies for existing products and on new production technologies for new or improved products?
A. Import competition B. Diffusion C. Research and development D. Balanced growth