Suppose your economics professor has an extra copy of textbook that he or she would like to give to a student in the class. Which of the following schemes is the most likely to result in an efficient outcome?
A. Auctioning off the textbook to the highest bidder.
B. Letting students take turns using the textbook.
C. Randomly selecting one student to receive the textbook.
D. Giving the textbook to the student who has the lowest midterm score.
Answer: A
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Assume weak growth in aggregate demand keeps the economy below potential GDP, so unemployment rises but inflation falls. This explains the ________ slope of the short-run Phillips curve
A) infinite B) positive C) negative D) zero
Refer to the figure above. This country's imports equal
A) CE units of X. B) GH units of Y. C) CD units of X. D) DE units of Y.
A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:
a. $400 million. b. $100 million. c. $80 million. d. zero.
Place point B on the graph to indicate where the United States economy operated in 1943.
