The more flexible prices are, the
A. more quickly a shock to the market can be absorbed.
B. greater the reliance by sellers to change the nominal price.
C. greater demand shifts have to be to bring about a new equilibrium.
D. larger the shifts in supply will be after a change in demand.
Answer: A
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An intertemporal budget constraint
A. requires an endowment point. B. requires time to remain constant. C. has no endowment point. D. requires time to move in a loop.
Which of the following are regulations that nations in regional trade blocs establish to delineate product categories eligible for trading preferences?
A) trade quotas B) trade tariffs C) rules of law D) rules of origin
Which of these would NOT be a factor that would permit the existence of monopoly power?
A. High levels of sunk costs B. Control of a scarce resource C. Diseconomies of scale in the production of the product D. All of these responses are correct
When aggregate demand shifts rightward along the short-run aggregate-supply curve, inflation
a. increases and unemployment increases. b. increases and unemployment decreases. c. decreases and unemployment increases. d. decreases and unemployment decreases.