Which of the following best describes stagflation?
What will be an ideal response?
rising unemployment and high inflation rates
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If the size of a tax doubles, the deadweight loss doubles
a. True b. False Indicate whether the statement is true or false
In the graph showing the Phillips curve from 2006 to 2016, we can see that during the period following the 2008 financial crisis, the Phillips curve ______.
a. shifted considerably to the left
b. shifted considerably to the right
c. fluctuated wildly
d. remained fairly stable
Discuss the characteristics of a perfect competitive industry and which real-life industries come closest to this type of market structure.
What will be an ideal response?
Which of the following is an example of economies of scale?
A. To attract firms to locate in its state, the state government reduced the tax rate that businesses must pay on its profits, thus lowering the costs to firms who locate in the state. B. As the computer industry has expanded, the number of professionally trained computer programmers has also increased, which has caused the salaries of computer programmers to increase. C. A firm increases in size and is therefore able to lower its health insurance costs because as the size of the group insured increases, the premium per person decreases substantially. D. As the demand for calculators increased, the price of calculators actually fell.