The Friedman—Phelps analysis shows that a negative relationship between inflation and unemployment holds
A) even when expected inflation changes.
B) even when the natural rate of unemployment changes.
C) even if both the expected inflation rate and the natural rate of unemployment change.
D) as long as the expected inflation rate and the natural rate of unemployment are approximately constant.
D
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If bad credit risks are the ones who most actively seek loans then financial intermediaries face the problem of
A) moral hazard. B) adverse selection. C) free-riding. D) costly state verification.
Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third largest firm has sales of $2 million, and the fourth largest firm has sales of $1 million
The four-firm concentration ratio for this industry is A) 36 percent. B) 60 percent. C) 50 percent. D) 25 percent.
If the price elasticity of demand is equal to 0, then demand is unit elastic
a. True b. False Indicate whether the statement is true or false
An example of price discrimination is the price charged for:
A. coffee. B. college admission. C. cashmere sweaters. D. cough syrup.