According to the theory of rational expectations, the economy always remains at the natural rate of unemployment, irrespective of policy changes
a. True
b. False
Indicate whether the statement is true or false
False
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Economists consider instances of increasing marginal utility to be
A. normal. B. impossible. C. unusual, as in the case of addictions. D. irrational.
The value of output produced in colonial America equals the value of income generated by the productive resources (land, natural resources, labor, capital and entrepreneurial talent) used to produce that output
Indicate whether the statement is true or false
Which of the following investments can be classified as specific assets?
a. Opening a restaurant in the business district of a city. b. Purchase of additional cotton bales expecting a rise in demand for cotton garments. c. Leasing out land in a tourist spot to build a retail outlet. d. Purchasing specialized equipment for a hydro-electric power project that will not produce electricity at a different location.
Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
a. high prices b. low price elasticity of demand c. high compatibility of member interests d. unequal member ownership of the natural resource