You're the president of the United States and your economic advisor tells you that the economy is in a state of stagflation. Are you happy? Stagflation refers to
a. inflation and low unemployment
b. high unemployment and low levels of inflation
c. high inflation, high unemployment, and low economic growth
d. low inflation, low unemployment, and low economic growth
e. low inflation, low unemployment, and high economic growth
C
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Suppose that Dell computers and Gateway computers are very close substitutes. Then the indifference curves between Dell computers and Gateway computers are almost straight lines. Is this analysis correct or incorrect? Explain
What will be an ideal response?
Look at the production schedule of the Widget Company below:
Number of workers 0 1 2 3 4 5 Number of widgets 0 12 22 30 36 40 What is the marginal product of the second worker? A) 8 B) 10 C) 12 D) 22
Which of the following describes a characteristic of a perfectly competitive market?
A) Equilibrium is achieved when demand for the product sold in the market equals the supply. B) There are many buyers and sellers. C) There are many sellers but few buyers. D) There are many buyers but few sellers.
Suppose there are 100 identical firms producing package delivery services. One of the firms pays a wage rate of $7 and hires 20 delivery workers. The price the firm charges to deliver a package is $10 . We know then that the number of delivery workers in the package delivery industry is
a. 100 workers b. 200 workers c. 700 workers d. 2,000 workers e. 10,000 workers