Incorporation of expectations into economic decision making indicates that in the long run:
a. inflation relates directly to unemployment.
b. inflation is inversely related to unemployment.
c. the Phillips curve is vertical at the natural rate of unemployment.
d. high unemployment is a primary cause of inflation.
c
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When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs?
A) 2.86 B) 0.35 C) 0.14 D) 0.05
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient. B) resource allocation is inefficient. C) too few tons of fertilizer are produced. D) consumers must pay too high a price for fertilizer.
When taxes are levied on transactions, irrespective of the party they are levied on,
a. The government can absorb all the consumer surplus from the transactions as revenue b. The government can absorb all the producer surplus from the transactions as revenue c. The government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged d. The government can absorb all of the surplus (producer and consumer)
Which of the following is NOT a way to signal high quality
a. wearing everyday clothes to a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date