Friedman's theory of the natural rate of unemployment and output
a. indicates the power of the central bank to target levels of unemployment.
b. demonstrates the limits to the trade-off between inflation and unemployment.
c. is the theoretical foundation for the monetarist belief that, in the long run, the influence of the money stock is primarily on the price level and other nominal variables.
d. both b and c.
e. all of the above.
D
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eBay has a seller reputation system to provide
A) consumers with a signal concerning seller quality. B) sellers a chance to signal other sellers concerning their quality. C) a reduction in monopoly power. D) improvements in investor relations.
The process of accumulation that occurs when interest is paid on previously earned interest is called:
A. backdating. B. compounding. C. present valuation. D. front loading.
The Coase theorem reminds us that efficiency is all about ________ and says nothing about ________.
A. who gets the most surplus; whether that's a fair outcome B. maximizing total surplus; the distribution of that surplus C. equitably distributing surplus; maximizing that surplus D. None of these statements is true.
Tennis rackets and ballpoint pens are:
A. substitute goods. B. inferior goods. C. complementary goods. D. independent goods.