One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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What is true about dominant strategies in the game in Scenario 13.9?
A) "Pollute" is a dominant strategy for both firms. B) "Pollute" is a dominant strategy for Lago only. C) "Don't Pollute" is a dominant strategy for both firms. D) "Don't Pollute" is a dominant strategy for Lago only. E) There are no dominant strategies.
Four roommates share an off-campus house and equally share the cost of rent. Everyone says that she values a clean house, yet the house is usually dirty. To an economist, a clean house in this case represents
a. a common resource problem. b. a public good. c. a club good. d. All of the above are correct.
Figure 11-1
In Figure 11-1, the slope of the expenditures schedule is .75 and the government wishes to achieve full employment. It should
a.
cut spending by 1,000.
b.
increase spending by 1,000.
c.
cut taxes by 1,000.
d.
increase spending by 250.
e.
cut taxes by 250.
The difference between a monopolist and a monopolistic competitor is that:
A. the average total cost curve of a monopolistic competitor is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolist can be in a position below the price in long-run equilibrium. B. the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position above the price in long-run equilibrium. C. the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position below the price in long-run equilibrium. D. a monopolist equates marginal revenue and marginal cost whereas a monopolistic competitor equates price and marginal cost.