Inflation target refers to the commitment of central bankers to keep inflation below a certain rate for the next year or two
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the scenario above. The opportunity cost of producing one pound of apples in Zeta is:
A) 0.67 pounds of oranges. B) 2 pounds of oranges. C) 1.5 pounds of oranges. D) 3 pounds of oranges.
Which of the following is TRUE regarding a perfectly competitive firm?
A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits. B) The firm always earns a normal profit. C) The firm's marginal revenue continually decreases. D) The firm's minimum efficient scale is small relative to the market demand.
Compared to a permanent reduction in tax rates, a temporary tax cut will generally
a. exert a larger impact on output and employment because its effects are immediate, long-lasting, and do not add much to the national debt. b. exert a smaller impact on output and employment because the temporary cut will not exert much impact on long-term income or the incentive to earn. c. exert a larger impact on output and employment because the temporary tax cut will lead to a larger budget deficit. d. exert an identical impact on output and employment because the incentive effects will be the same regardless of whether the tax cut is temporary or permanent.
The accompanying graph depicts demand.
At point A, demand is:
A. perfectly elastic. B. inelastic. C. elastic. D. unit elastic.