Which of the following is most likely to lead to inflationary monetary policy?
A) declining oil prices
B) resolution of conflict in the Middle East
C) the enactment of a free-trade agreement with Mexico
D) rising unemployment
D
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When more resources in an economy are devoted to the production of capital goods: a. the production possibilities curve shifts inward
b. the production possibilities curve in the current period shifts inward, but shifts outward in the future. c. the production possibilities curve shifts outward next in the future. d. the production possibilities curve is unchanged from period to period.
The lemons problem gives the owners of above-average-quality used cars an incentive to:
A. offer a warranty when selling their cars. B. exaggerate the quality of their cars when selling them. C. ask for a sales price that is higher than the blue book value of their car. D. understate the true quality of their cars when selling them.
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25If all three parties can communicate and negotiate with each other at no cost, will Erie Textiles use a filter?
A. No, because it makes $200 less in profit with the filter. B. Yes, because the benefit it would receive from being able to advertise that it acts in an environmentally responsible way exceeds the cost of using a filter. C. Yes, because fishermen and bird watchers are willing to pay enough to Erie Textiles to offset the cost of using a filter. D. No, because use of a filter would result in smaller total economic surplus.
Which of the following is associated with macroeconomics?
B)A case study of pricing and production in the textbook industry C) an examination of the incomes of the Uni of Toronto Business School graduates D)a study of the trend of pecan prices since world war II