Which of the following is true?
a. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
b. Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
c. Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
d. None of the above.
d
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Firms are better off using rebates rather than just lowering the price of a good because
A) people view the firm in a positive light because now poorer people will be able to afford their good. B) customers overestimate the value of the rebate and so buy more of the good, making profits higher than if they just lowered the price. C) only those who place a low value on their time or are price sensitive actually redeem the rebate, making profits higher than if they just lowered the price. D) lowering the price is inefficient and creates additional deadweight loss.
Which of the following should not be counted in a cost-benefit analysis?
a. direct benefits and costs b. real secondary benefits c. technological secondary costs d. pecuniary benefits e. intangibles
The value of exports minus the value of imports in a period is called the:
A. trade balance. B. trade gap. C. international equilibrium. D. budget balance.
An efficient market is characterized by the fact that
A. there are no opportunity costs. B. wealth is distributed fairly. C. profit opportunities are eliminated almost instantaneously. D. output is steady or growing and there is low inflation.