With a cost shock, a small decrease in output relative to the increase in the price level would occur if the ________ curve is relatively ________.
A. AD; flat
B. AS; flat
C. AD; steep
D. AS; steep
Answer: C
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Even if your college degree is irrelevant to an employer's needs, your high GPA might still get you the job because
A) the firm is not a profit maximizer. B) your GPA sends a signal about your quality as a worker. C) the firm will most likely make an adverse selection. D) the high GPA eliminates the possibility of moral hazard.
Interdependent decision making on price, quality, or advertising is characteristic of
a. perfect competition b. monopolies c. oligopolies d. monopolistic competition e. both oligopolies and monopolistic competition
If the economy were producing at point E and moved to point D,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities would shift outward.
D. the economy would shift resources from producing butter to increasing the production of guns.
Governments can increase the likelihood of economic development by
What will be an ideal response?