Fiscal policy cannot help an economy produce at an output level above potential GDP without causing __________.
a. inflation
b. deflation
c. unemployment
d. taxation
a. inflation
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Javier can earn $80,000 a year working as a firefighter, or $78,000 a year working as a police officer. The probability of death from working as a firefighter is 1/2,000, and the probability of death from working as a police officer is 1/4,000
Using the compensating differential approach and the above information, what is the value of Javier's life?
All games share three characteristics. Two of these characteristics are rule and strategies. What is the third characteristic called?
A) payoffs B) competition C) collusion D) results
Referring to the previous question, what will happen to the equilibrium price and quantity of cars?
A) They will stay the same as domestic producers replace the cars once imported. B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease. C) The surplus will cause equilibrium price to decrease and equilibrium quantity to increase. D) The shift in the demand curve will cause equilibrium price to increase and quantity to increase.
If a firm is able to set price,
A) it is a monopoly. B) its marginal revenue is constant. C) it sells its output at a constant price. D) it faces a downward-sloping demand curve.