Suppose housing construction is a price-searcher market with low barriers to entry. Which of the following will be true for this market?
a. The output of the housing construction firms will be produced inefficiently.
b. Consumers would be better off if there were fewer firms and less variety in the housing market.
c. If firms produced larger quantities but less variety, they could reduce the per-unit costs.
d. Consumers do not have to pay for variety in the housing construction market.
C
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Refer to Figure 28-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run. B) the natural rate of unemployment in this economy is 5.5 percent. C) the expected rate of inflation in this economy is 10 percent. D) All of the above are correct.
Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins
A) wages should rise and rents should fall in H. B) wages and rents should rise in H. C) wages and rents should fall in H. D) wages should fall and rents should rise in H. E) rent will be unchanged but wages will rise in H.
If people use quartz as a medium of exchange, then they: a. have a barter economy
b. are using commodity money. c. are using token money. d. are using legal tender. e. are using fiat money.
A rational consumer should not consume more of a good when:
A. total utility is decreasing. B. marginal utility is diminishing. C. the price is high. D. income is decreasing.