"The long-run Phillips curve is downward sloping." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect because the long-run Phillips curve is vertical. The short-run Phillips curve is downward sloping.
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The concept of loss aversion is:
A. preferring certain outcomes over uncertain ones. B. a general tendency for people to put more effort into achieving gains than avoiding losses. C. a general tendency for people to put more effort into avoiding losses than achieving gains. D. a spectrum of tolerance for risky situations.
Which of the following statements is not correct?
A. A price ceiling set at $9 would result in a surplus. B.A price floor set at $14 would be binding, but a price floor set at $8 would not be binding. C.A price ceiling set at $8 would be binding, but a price ceiling set at $12 would not be binding. D. A price floor set at $11 would result in a surplus.
Figure 10-8
Figure 10-8 describes which of the following periods in the U.S.?
a.
1930s
b.
1973-1975
c.
late 1990s
d.
2007-2009
Under average-cost pricing, an increase in the monopolist's production cost will:
A. decrease its profit because its profit per unit decreases. B. not affect its profit because the government adjusts the regulated price equal to the average cost. C. increase its profit because the monopolist can reduce the average cost at a greater output level. D. None of these