In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25.
B) $50.
C) $75.
D) $100.
A
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Using the table above, the number of people in the labor force is
A) 165 million. B) 175 million. C) 195 million. D) 185 million. E) 145 million.
The curve that shows the relationship between inflation and unemployment when the economy is at full employment is the
A) aggregate supply curve. B) long-run Phillips curve. C) long-run Okun's curve. D) aggregate demand curve. E) short-run Phillips curve.
Suppose the money demand function is given by Md/P = 640 + 0.1Y - 5000 (r + ?e). Suppose the central bank changes the nominal money supply depending on income and inflation: Ms = 1000 + 0.1Y - 4000?
(a) If expected inflation equals actual inflation = 0.03, Y = 1000, and r = 0.02, calculate the price level. (b) If inflation rises to 0.04 while the other variables remain as in part a, calculate the price level. (c) If expected inflation rises to 0.04 while the other variables remain as in part a, calculate the price level. (d) If the real interest rate rises to 0.03 while the other variables remain as in part a, calculate the price level.
If a person is risk averse, then she has negative marginal utility of wealth
Indicate whether the statement is true or false