A movement up along a short run Phillips Curve to an unemployment rate below the natural rate of unemployment will tend to shift the Phillips Curve up, once expectations adjust; a movement down along a short run Phillips Curve to an unemployment rate above the natural rate of unemployment will tend to shift the Phillips Curve down once expectations adjust
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is false?
A) Economic costs include the opportunity costs of the resources owned by the firm. B) Accounting costs typically include only explicit costs. C) Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs. D) Accounting profit is equal to total revenue minus implicit costs.
Which of the following is a correct statement?
A. A firm receives no individual benefit from strategies that raise the marginal costs of its rivals. B. An incumbent firm may experience a learning curve that allows it to produce at a lower cost than a potential entrant. C. Predatory pricing is easy to prove in a court of law. D. No individual firm can benefit from strategies that raise the fixed costs of all the firms in the industry.
If there are external benefits associated with the consumption of a good or service
A. the private demand curve will underestimate the true demand curve. B. the market demand curve will be the vertical summation of the individual demand costs. C. the private demand curve will overestimate the true demand curve. D. consumers will be willing to pay for all these benefits in private markets.
If a severe natural disaster reduced the population of a city, one would expect a natural monopoly to:
A. lower prices. B. split into two firms. C. merge with a competitor. D. experience an increase in average costs.