Advocates of flexible rates ______.
a. embrace the Bretton Woods system
b. argue that flexible rates do not cause inflation
c. prefer government control of exchange rates
d. believe they can cause currency shortages
b. argue that flexible rates do not cause inflation
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What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve?
What will be an ideal response?
The big-push theory argues that coordination failures may arise because of
a. pecuniary externalities. b. technological externalities. c. lack of human capital. d. all of the above.
Suppose that inflation is at the target rate and output has fallen substantially below potential output. A central bank with a primary objective of price stability should ________
A) do nothing, because inflation cannot rise when unemployment is high B) ease monetary policy, to avoid a decrease in the inflation rate C) do nothing, because stabilizing economic activity is not a primary objective D) ease monetary policy, because avoiding high unemployment is more important than avoiding high inflation E) none of the above
Which of the following is a correct statement about unions in the United States?
A. Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. B. The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. C. Half of the top ten U.S. unions now have members who work in service and government occupations. D. Half of all U.S. workers are union members.