Modern Phillips curve analysis indicates that if people
a. underestimate inflation, actual unemployment will be below the natural rate.
b. overestimate inflation, actual unemployment will be below the natural rate.
c. accurately estimate inflation, actual unemployment will be less than the natural rate.
d. accurately estimate inflation, actual unemployment will be below the natural rate.
A
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If the firm in the figure above attempted to minimize its average total cost by producing 100 pairs of Tommy jeans per day at an average total cost of $20 per pair and it sold those jeans for $80 per pair, the firm would ________
A) earn zero economic profit B) earn a larger economic profit that a firm that produced 125 jeans because the ATC of producing 125 jeans is higher than the ATC of producing 100 jeans C) incur an economic loss D) earn a smaller economic profit than a firm that produced 125 jeans E) achieve an efficient use of resources
Some companies subject their applicants to extensive tests.? Why?
A) to reduce the informational asymmetry between the firm and the applicant
B) to screen the applicant to avoid the problem of adverse selection
C) to gather more information about the applicant
D) All of the above.
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
The profit-maximizing price for this monopolist to charge is:
A. A. B. E. C. C. D. B.