The short-run Phillips curve is drawn for a given expected inflation rate and so it shifts as inflation expectations change
a. True
b. False
Indicate whether the statement is true or false
True
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Sarah consumes only strawberries and cream, and she is spending all of her income. Her marginal utility of her last dish of strawberries is 200 and her marginal utility of her last pint of cream is 200
The price of strawberries is $1.00 per dish and the price of cream is $2.00 per pint. To maximize her utility, Sarah should A) buy more strawberries and less cream. B) buy more cream and less strawberries. C) not change her purchases of strawberries and cream. D) definitely buy no cream at her consumer equilibrium.
Adam makes $25,000 per year and Bob makes $45,000 a year, and they both have the same marginal benefit curve. According to the utilitarian view, if a dollar is transferred from Bob to Adam, then
A) the change in Adam's marginal benefit plus the change in Bob's marginal benefit is negative. B) Adam's marginal benefit increases by more than Bob's marginal benefit decreases. C) the change in Adam's marginal benefit plus the change in Bob's marginal benefit equals zero. D) Adam's marginal benefit decreases by more than Bob's marginal benefit increases.
One answer to the problem of natural monopoly is provision of the good by a government-owned and operated firm. Why is that option not used very often?
The presence of adverse selection in a market causes:
A. some transactions to fail to take place. B. market failure. C. a deadweight loss. D. All of these statements are true.