Refer to the figure above. What is the domestic price of pens in Lithasia?
A) $1
B) $2
C) $3
D) $6
C
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According to the Hotelling Principle, the price of a nonrenewable resource is expected to
A) rise at a rate higher than the interest rate. B) rise at a rate lower than the interest rate. C) rise at a rate equal to the interest rate. D) fall at a rate equal to the interest rate.
To alleviate the commons problem, the government can
A) apply a tax. B) set a quota. C) assign property rights. D) All of the above.
If the national debt increases in any given year, it follows that the government:
A. bought bonds in that year to finance a budget deficit. B. sold bonds in that year to finance a budget deficit. C. sold bonds in that year to finance a budget surplus. D. bought bonds in that year to finance a budget surplus.
If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
A. The slope is horizontal in the short and long run. B. The slope is upward sloping in the short run and vertical in the long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is downward sloping in the short run and vertical in the long run.