The phrase "sticky prices" refers to the prices of:
A. consumer goods not adjusting to the price level.
B. more durable goods "sticking," and not adjusting to the price level.
C. some output taking longer to adjust to the price level than the inputs used to create it.
D. some inputs taking longer to adjust to the price level than the output it creates.
Answer: D
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Individuals will only pursue an activity if: a. E(MB) E(MC)
b. E(MB) = E(MC). c. E(MB) > E(MC). d. E(MB) < E(MC).
The major problem with direct controls as an environmental protection measure has been
a. inept administrators. b. corrupt judges. c. illegal dumping. d. legislation with no teeth.
Under which one of the following situations would you be better off?
A. You lend a friend $10,000 at 3 percent to be repaid in one year and unanticipated inflation is 6 percent during the year. B. You borrowed $10,00 at 3 percent to pay for this year's college expenses and unanticipated inflation is 6 percent during the year. C. You have $10,000 in your savings account paying 5 percent per year and unanticipated inflation is 8 percent per year. D. You have paid $500 for a $1,000 U.S. savings bond that matures in 10 years and unanticipated inflation is 10 percent per year.
In calculating the unemployment rate, part-time workers are:
A. Counted as unemployed because they are not working full-time B. Counted as employed because they are receiving payment for work C. Used to determine the size of the labor force, but not the unemployment rate D. Treated the same as "discouraged" workers who are not actively seeking employment