Suppose the Phillips curve is represented by the following equation: ?t - ?t-1 = 20 - 2ut. Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?
A) the rate of inflation will tend to increase
B) the rate of inflation will be constant
C) the rate of inflation will tend to decrease
D) none of the above
A
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The total revenue test says that if a price decrease leads to
A) an increase in total revenue, demand is income elastic. B) a decrease in total revenue, demand is income inelastic. C) a decrease in total revenue, demand is price inelastic. D) a decrease in total revenue, supply is price inelastic. E) a decrease in total revenue, supply is price elastic.
The largest source of income for most people is:
A. income from interest in savings accounts. B. wages earned at work. C. rental income from properties that they own. D. investment income.
An oligopolistic market
a. has a small number of rival firms, and each is large relative to the size of the market. b. is characterized by firms that merely take the price that is determined by the forces of supply and demand in the market. c. has low entry barriers facing firms that may be interested in entering the market. d. has a large number of firms that are small relative to the size of the market.
The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.
A. an increase in the supply of B. a decrease in the supply of C. a decrease in the quantity supplied of D. an increase in the quantity supplied of