The price of a first-class stamp in 1957 was 3 cents, and it is 47 cents in 2016. From this we know that
A) both the relative and the absolute price of first-class stamps increased from 1957 to 2016.
B) the money price of first-class stamps increased from 1957 to 2016 but the absolute price of first-class stamps stayed constant.
C) the money price of first-class stamps increased from 1957 to 2016 and the relative price of first-class stamps decreased.
D) the money price of first-class stamps increased from 1957 to 2016, but we can't tell if the relative price of first-class stamps increased or decreased without more information.
Answer: D
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Which of the following is a difference between a monopolistically competitive market and a perfectly competitive market in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market earn positive economic profits in the long run. B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market incur losses in the long run. C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run. D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
The democratic political process is weighted in a manner that favors
A) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect output before they affect the price level. B) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect the price level before they affect output. C) expansionary over contractionary policies because changes in aggregate demand tend to affect output before they affect the price level. D) expansionary over contractionary policies because changes in aggregate demand tend to affect the price level before they affect output.
The main duty of the Environmental Protection Agency (EPA) is to: a. assure safe work places
b. prevent crime. c. enforce environmental standards. d. regulate air transport. e. regulate rates charged by generators of nuclear energy.
Several countries in the world have failed to "converge" with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up", in terms of the pillars of economic growth. Are there any special problems facing these countries?