The short-run Phillips curve is ________, while the long-run Phillips curve is vertical at the ________.
A. upward sloping; minimum wage
B. downward sloping; real wage
C. upward sloping; average nominal wage rate
D. downward sloping; natural rate of unemployment
E. horizontal; origin
Answer: D
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The people of Andres, a small fishing village in a country, are facing extremely difficult times as their source of livelihood is threatened. Unregulated by the government, the coastline was subject to overfishing for a long time, adversely affecting the stock of fish. The variety of fish has declined and it takes much longer to haul in a decent catch these days. People in Andres are worried that
they may have to migrate to other areas or look for alternative sources to earn a living. Which of the following is most similar to this scenario? a. Oil producers hoard the extracted oil to increase prices. b. Public highways get congested because they are nonexclusive. c. Poaching of the Javan rhino for its priced horns in unprotected forest belts of Indonesia has led to its near extinction. d. People in Jinbong village now have to pay to be able to fish in the local pond. e. A farmer shifts from potato to corn cultivation because the latter offers more profits.
Economic profits are equal to
A. total revenues, after tax, minus cost of goods sold. B. total revenues minus the implicit and explicit costs of all inputs used. C. total revenues minus the opportunity cost of labor. D. total revenues minus total fixed costs.
The largest portion of Social Security expenditures is for
A. Medical benefits. B. Retirement benefits. C. Disability benefits. D. Survivor benefits.
Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?