A price floor set above the equilibrium price is binding
a. True
b. False
Indicate whether the statement is true or false
True
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If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale
A) long-run; decrease; economies B) short-run; decrease; economies C) long-run; decrease; diseconomies D) short-run; decrease; diseconomies E) long-run; increase; economies
Suppose the Organization of Petroleum Exporting Countries (OPEC) sharply increased the price of oil, which triggered higher inflation rates in the United States. This type of inflation is best classified as:
a. pseudo-inflation. b. demand-pull inflation. c. cost-push inflation. d. hyperinflation.
Permanent price differentials among resources are explained by which of the following reasons?
a. movement from lower pay to higher pay b. movement from no benefits to higher benefits c. differences in the time and money involved in developing the necessary skills d. none of the above explain permanent price differentials in resources
Countercyclical discretionary fiscal policy calls for:
A. surpluses during both recessions and periods of demand-pull inflation. B. deficits during recessions and surpluses during periods of demand-pull inflation. C. deficits during both recessions and periods of demand-pull inflation. D. surpluses during recessions and deficits during periods of demand-pull inflation.