An article in a recent economics periodical asks the question: "Is low inflation worth it?" By "it," the article probably means
a. the loss of comparative advantage.
b. enduring externalities.
c. unemployment.
d. repealing the law of supply and demand.
e. the opportunity cost of higher interest rates.
c
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If a firm increases output when MR > MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.
What are some examples of the unconventional monetary policy from the Federal Reserve in response to the 2007-2009? Why were opponents concerned about these measures?
The largest expenditure component of GDP is:
A. net exports. B. investment. C. consumption. D. government spending.
The market system communicates changes in market conditions and elicits appropriate responses from businesses and resource suppliers through changes in prices. This is known as the:
A. Guiding function of prices B. Monetary function of prices C. Circular flow of income D. Market determination of prices