Menu costs are a possible reason for
A) swings in the labor force participation rate.
B) low levels of consumer confidence in response to aggregate supply shocks.
C) aggregate supply shocks.
D) sticky product prices.
D
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Answer the following statement(s) true (T) or false (F)
1. The travel cost method estimates benefits based on the substitutability of a natural resource and its recreational value. 2. A disadvantage of the travel cost method is that it estimates only existence value and not user value. 3. In modeling the travel cost method, the estimated benefit of improving the environmental quality of a natural resource is captured by the change in consumer surplus associated with a decrease in demand for that resource 4. The hedonic price method is based upon the premise that goods and services are valued for their individual attributes. 5. Among the advantages of the hedonic price method is that data on a product’s characteristics are readily available.
The graph shown demonstrates a tax on buyers. Before the tax was imposed, the sellers produced ________ units and received __________ for each one sold.
A. 6; $22
B. 6; $34
C. 9; $18
D. 9; $30
The M1 definition of money includes money market accounts.
Answer the following statement true (T) or false (F)
Which of the following questions best illustrates the "framing effects" studied by behavioral economists?
A. Which would you rather have after lunch today: an apple or an orange? B. How much would you rather receive: $100 while everyone else gets $110, or $80 like everyone else? C. Where would you rather invest your funds in: stocks or gold certificates? D. What would you rather do: go to college and postpone having a full-time job, or forgo college and get a full-time job now?