The existence of menu costs are often used to explain why
A) fiscal and monetary policies should be relatively effective.
B) the price of services, like those provided by restaurants and barbers, rise at a faster rate than the price of goods, like automobiles and clothing.
C) food prices tend to rise disproportionately rapidly in the consumer price index.
D) price and wage adjustments will be relatively rapid.
E) people prefer to look backward, instead of forward, when anticipating the future.
A
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A country has imports of goods and services at $2,000 billion. The interest paid to the rest of the world is $500 billion. The interest received from the rest of the world is $400 billion. The decrease in official reserves is $10 billion
The government sector balance is $200 billion, savings is $1,800 billion, investment is $2,000 billion, and net transfers is zero. What are net exports? A) $0 B) -$100 billion C) -$200 billion D) $100 billion E) $200 billion
If marginal product is at a maximum, then marginal cost is at a minimum
a. True b. False Indicate whether the statement is true or false
Efficient production can be carried out anywhere on or below the production possibilities frontier
a. True b. False Indicate whether the statement is true or false
The price elasticity of demand for a commodity is determined primarily by the
a. size of the consumer surplus. b. availability of good substitutes for the good. c. incomes of consumers. d. availability of complementary goods.