The Phillips curve shows the trade-off between:
a. unemployment and inflation
b. low interest rates and high levels of investment.
c. economic growth and inflation.
d. consumption and investment.
a
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In the long run,hotel room prices that are falling as a result of excess supply will ______ the quantity of hotel rooms supplied in a market.
A. have no effect on B. increase C. eliminate D. decrease
The international unit of accounting used by the IMF is the
A. gold standard. B. euro. C. special drawing right. D. dollar.
For a risk-averse individual, marginal utility of income does not diminish.
Answer the following statement true (T) or false (F)
Because smoking causes illness and disability to smokers, society must maintain more health-service capacity than it would need in the absence of smoking. Since the cost of maintaining this capacity is covered to a substantial degree by health insurance, even nonsmokers must pay higher premiums. Also, smokers hurt nonsmokers as a result of "passive smoke." The Rand Corporation estimates these
costs to be 29 cents per pack of cigarettes. Cigarette taxes average 37 cents per pack. Based on the economist's definition of efficiency, it follows that a. cigarette taxes are too high, and cigarette production is lower than the efficient amount. b. cigarette taxes should be increased until external costs are zero. c. since the tax exceeds the marginal cost, we have a better than efficient outcome. d. we are overconsuming cigarettes.