An upward sloping short-run aggregate supply curve suggests that
A. real GDP is determined by aggregate supply.
B. prices and wages are completely inflexible.
C. prices and wages adjust in part to short-run demand changes.
D. prices and wages are completely flexible.
Answer: C
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Economics is the study of how people make
A) subjective judgments. B) themselves worse off. C) money. D) choices.
Refer to the information provided in Scenario 22.4 below to answer the question(s) that follow.SCENARIO 22.4: In a randomized 1-year trial of 400 Mr. Lincoln hybrid tea rose bushes with rose rosette disease, 200 are slated to receive only a sulphur treatment (we will call this Group A), and the other 200 are slated to receive the sulphur treatment and an additional neem oil treatment 4 months later (we will call this Group B). Assume that the neem oil treatment is ineffective in treating rose rosette disease, so on average, the same proportion of rose bushes in each group will die of the disease. In Group B, 25 of the 200 rose bushes die in the 4-month period leading up to the neem oil treatment. Of the 175 bushes left, 25 die in the 8 months following the neem oil treatment. Since we
know the neem oil treatment is ineffective, the rose bushes in Group A will, on average, suffer the same fate as those in Group B, with 25 bushes dying in the first 4 months and another 25 dying in the following 8 months.Related to the Economics in Practice on p. 727: Randomly granting vouchers by the Department of Housing and Urban Development was an effort to avoid the A. selection bias. B. substitution bias. C. location bias problem. D. income bias.
In the long run, a firm in monopolistic competition will
A) make a negative economic profit, that is, an economic loss. B) make zero economic profit, that is, a normal profit. C) make a positive economic profit. D) None of the above answers is necessarily correct because the amount of the profit or loss depends on the slope of the demand curve.
The socially optimal amount of pollution is
A) zero. B) greater than zero. C) indeterminant. D) unattainable.