In face of a negative supply shock, the Fed may avoid a rise in unemployment only if it is willing to increase the rate of inflation
Indicate whether the statement is true or false
TRUE
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A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.
Diversification reduces the risk that ________ face with ________ cost.
A) firms; little to no B) shareholders; little to no C) firms; zero D) shareholders; high
As economies are predictable, economic risk presents executives with very few challenges.
Indicate whether the statement is true or false.
Which of the following is TRUE for the perfectly competitive firm?
A. Price elasticity of demand is equal to 1. B. AR is more than price. C. AR is less than price. D. Price and MR are always equal.