One reason that the Phillips curve “broke down” is that it
A. is unable to explain short-run movements in inflation and unemployment, but does a better job of explaining long-run movements.
B. assumes a quick-acting self-correcting mechanism, and the economy has a very slow self-correcting mechanism.
C. is a statistical relationship, and some of the points are not sustainable in the long run.
D. cannot explain demand-side inflation, and it collapsed when demand-side inflation was predominant in the 1970s.
Answer: C
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When many sellers are involved in selling their products in a market, the market structure may be which of the following? i. perfect competition ii. monopolistic competition iii. monopoly
a. (i) only b. either (i) or (ii) c. (ii) only d. (i), (ii), or (iii)
The most important reason for why some people have higher incomes than others is
A. employment discrimination. B. differences in wages and salaries. C. property income. D. government transfer payments.
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the bars and restaurants face a ________ demand curve.
A. perfectly elastic B. perfectly inelastic C. more elastic D. more inelastic
The problem with the separation of ownership from control is that
A) the owner in a proprietorship may not always act in the profit-maximizing fashion because he or she may not have the experience or expertise that professional managers have. B) the managing partner of a firm may not always behave in the way that other managers would if they were the managing partners. C) the managers of the firm can make decisions that reduce the wealth of the owners while not reducing their own wealth. D) the owners of firms may not always know the best way to run a firm, yet they are the ones who elect the managers of the firm.