The short-run Phillips curve shows that:
a. the economy can have low inflation and low unemployment simultaneously
b. the economy can have high per-capita income and high interest rate simultaneously.
c. a reduction in per-capita income comes at the expense of lower inflation.
d. a reduction in unemployment comes at the expense of higher inflation.
e. a reduction in inflation comes at the expense of lower exchange rate.
d
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A profit center is
a. evaluated based on minimizing costs within the division b. evaluated based on maximizing costs within the division c. evaluated based on minimizing profits generated by the division d. evaluated based on maximizing profits generated by the division
When economic choice involves an adjustment to an existing situation, marginal analysis
a. has no practical applications or real-world uses b. eliminates incorrect decisions and bad choices c. involves comparing the additional costs and additional benefits of an activity before deciding d. involves examining only the total costs and total benefits of an activity before deciding e. none of the above
The national debt: a. is a flow variable measuring the net accumulation of past deficits
b. is a stock variable measuring the net accumulation of past deficits. c. measures the amount by which government revenues exceed outlays in a particular year. d. includes the projected liabilities of Social Security, Medicare, and other federal retirement programs. e. includes outstanding liabilities of federal, state, and local governments minus government financial assets.
When two variables move in opposite directions, the curve relating them is
a. upward sloping, and we say the variables are positively related. b. upward sloping, and we say the variables are negatively related. c. downward sloping, and we say the variables are positively related. d. downward sloping, and we say the variables are negatively related.