When expectations of inflation are revised downward, the short-run Phillips curve:
a. shifts rightward.
b. becomes steeper.
c. shifts leftward
d. becomes flatter.
c
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Monopolistic competition is a market structure in which
A) a small number of firms compete. B) firms produce identical products. C) firms compete only on product price. D) firms are free to enter and exit the market.
Refer to the accompanying table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out?Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. 4 B. 5 C. 2 D. 3
Which of the following would NOT affect a good's price elasticity of demand?
A) the ease of substitution between goods B) the cost of producing the good C) the number of substitute goods available D) the proportion of one's budget spent on an item
If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the
A. encouraged worker effect. B. discouraged worker effect. C. fallacy of composition. D. none of the options are correct.