Which of the following statements describes what most likely occurred in this economy?
a. Unemployment fell below the natural rate of unemployment.
b. There was a temporary negative shock to demand-side forces.
c. A rightward shift in SRAS caused an inflationary gap.
d. An increase in input prices caused a recessionary gap.
d. An increase in input prices caused a recessionary gap.
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The outcome of first-degree price discrimination is:
A) Pareto efficient with equity. B) Pareto efficient with inequity. C) Pareto inefficient with inequity. D) Pareto inefficient but is equitable.
Relative price is
A. The price of one good in comparison with the price of other goods. B. A decrease in purchasing power because of rising prices. C. The current price paid for a good or service. D. The amount of income a particular good requires.
Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A. greedy business people behaving in an inappropriate manner. B. firms have not yet exited the industry. C. marginal cost pricing. D. market failure.
Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million