The fact that the prices for McDonald's Big Mac sandwich are not the same around the world illustrates one reason why purchasing power does not hold: Many goods are not traded internationally
Indicate whether the statement is true or false
TRUE
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A profit-maximizing, monopolistically competitive firm always operates: a. at the minimum of average total cost
b. at the point where demand is unit elastic. c. with excess capacity. d. at an economically efficient scale.
You have just bought a used car and drive away satisfied that you’ve made a good deal on the purchase. What would an economist say about your “gain” on the deal?
A. Your gain has clearly meant that the seller lost on the deal. B. The seller has clearly gained, and you have actually lost on the deal. C. Both you and the seller have gained something. D. If your gain is too large, then the deal should be renegotiated. E. If the seller’s loss is too large, then the deal should be renegotiated.
Within the AD/AS model, if an unanticipated reduction in aggregate demand results in less than the full-employment rate of output,
a. the natural rate of unemployment will increase. b. long-run aggregate supply will increase. c. lower resource prices and declining interest rates will direct the economy back to full employment. d. higher resource prices and rising interest rates will direct the economy back to full employment.
"Income security" programs comprised 33 percent of the federal government's spending in 2011 . Give a few examples of the programs included in this category