A favorable supply shock
a. raises unemployment and the inflation rate.
b. raises unemployment and reduces the inflation rate.
c. reduces unemployment and raises the inflation rate.
d. reduces unemployment and the inflation rate.
d
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Which of the following statements is true?
A) Data are facts established by observation and measurement. B) Theories are statistics that describe the real world. C) Hypotheses are predictions that can be tested with data. D) Empirical evidences are facts, measurements, or statistics that describe the world.
When someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a
a. breach of contractual obligations b. denial of good guarantee c. loss of reputation d. moral hazard
Monopolistically competitive firms use product differentiation to increase the price elasticity of demand
a. True b. False
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.