Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________
A) do not change; increases B) increase; increases C) decrease; increases D) decrease; decreases E) increase; decreases
Developing country governments often collaborate with foreign companies in
a. choosing inappropriate technologies b. transferring assets back home during foreign exchange crises c. promoting corporate goals over development goals d. avoiding taxes e. all of the above
If the supply curve of labor facing a firm is upward sloping, this implies that
a. the firm is unable to hire additional workers b. to hire additional workers, the firm must increase the wage rate c. any number of workers can be hired at a fixed wage d. additional workers can be hired at lower wage rates e. the demand curve for the firm's good must be horizontal
The rate of interest that the Fed charges banks on loans is called the reserve rate
a. True b. False Indicate whether the statement is true or false