When the price level rises more than expected, a firm with a sticky price will sell its output at a price that is
a. less than it desires and increase its production.
b. less than it desires and decrease its production.
c. more than it desires and increase its production.
d. less than it desires and decrease its production.
a
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From the perspective of economic theory, property rights are
A) human rights. B) just as important as human rights. C) less important than human rights. D) more important than human rights. E) usually in conflict with human rights.
When a negative externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above
Monopolies exist for each of the following reasons, EXCEPT:
a. competitors are legally unable to challenge them. b. they have control over resources with very few good substitutes. c. it is sometimes inefficient to have competition in certain markets. d. it increases both producer and consumer surplus.
When the government's outlays exceed its tax revenue, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) shrinks thanks to the budget deficit. D) grows to finance the budget surplus. E) does not change because it has nothing to do with government outlays and tax revenue.