When a temporary negative supply shock hits the economy, then in the short-run ________
A) if the central bank focuses on stabilizing output, it cannot stabilize inflation
B) if the central bank focuses on stabilizing inflation, it cannot stabilize output
C) the divine coincidence does not hold
D) all of the above
E) none of the above
D
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Farmer Jane grows wheat on land that is bought and paid for. She figures her profit per acre is $60 because she puts $30 of purchased inputs onto each acre, $10 worth of her time into working on each acre, and the harvested wheat sells for $100. Farmer Jane
a. has correctly calculated her economic profit. b. has forgotten to include the opportunity cost of the land in her calculation of profit. c. should not have included the value of her time in calculating profits. d. should not have included any costs in calculating her economic profit.
What are two ways that a government or group can ensure that the economic pie is maximized when the volunteer's dilemma arises?
What will be an ideal response?
Some colleges now offer massive open online courses (MOOCs), where students do not need to be in the same classroom as their instructors
The fixed cost of an online course is relatively ________, but after the courses are placed online, the marginal cost of providing instruction to an additional student is ________. A) high; low B) high; high C) low; high D) low; low
Productivity growth in the U.S. averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then
a. True b. False Indicate whether the statement is true or false