At long-run equilibrium in monopolistic competition, there is:
A. Allocation efficiency
B. Productive efficiency
C. Both allocation and productive efficiency
D. Neither allocation nor productive efficiency
D. Neither allocation nor productive efficiency
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A deficit in our balance of payments causes the dollar to __________, which causes the deficit to __________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
While a trade-off between inflation and unemployment may exist when people expect no inflation, when they realize inflation is occurring, what happens?
a. The trade-off increases. b. The trade-off decreases. c. The trade-off disappears. d. The trade-off shifts.
Economists favor a negative income tax because they believe
a. that it will create more jobs for economists to monitor the program. b. the current welfare programs have excessively high work incentives, which result in less total work. c. it is more efficient than the existing welfare system because NIT provides better work incentives. d. All of the above are true.
A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis
A) increases by a decreasing amount. B) decreases. C) does not change by much. D) increases by an increasing amount. E) increases by a constant amount.