In order for a voluntary agreement to be reached in general, transaction costs should be
A) infinite.
B) high relative to expected marginal benefits of the agreement.
C) low relative to expected marginal benefits of the agreement.
D) determined by the Environmental Protection Agency.
C
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A short-lived increase in oil prices caused by destruction of oil-producing and oil-refining facilities by a large hurricane will
A) shift the SRAS curve to the right. B) shift the AD curve to the right. C) shift the SRAS curve to the left. D) shift the LRAS curve to the right.
What do we need to assume about firms in the sticky price model?
A) They accommodate any demand at the given price. B) They hire until the real wage equals the average labor productivity. C) They maximize only current profits. D) They adapt the price to current conditions.
Between 1999 and 2015, globally the number of children who were not attending school:
A. dropped to less than 16 percent. B. reduced by half. C. doubled. D. dropped to less than 6 percent.
The idea that inflation by itself reduces people's purchasing power is called
a. the inflation tax. b. menu costs. c. the inflation fallacy. d. shoeleather costs.