The typical relationship between inflation and unemployment is:
A. as unemployment falls, inflation falls.
B. as unemployment falls, inflation increases.
C. as unemployment falls, nothing happens to inflation.
D. unemployment changes do not directly lead to changes in inflation, but inflation changes may cause changes in unemployment.
Answer: B
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If a small plant is more efficient than either a medium-sized or a large plant, the situation must be one of
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. None of these.
If utility is not maximized, then:
A. some change in consumption will increase satisfaction. B. no change in consumption will increase utility. C. only a change in income will increase utility. D. only a change in price will increase utility.
An increase in the user cost of capital leads firms to ________ their profit by ________ their capital-output ratio
A) raise, increasing B) raise, decreasing C) lower, increasing D) lower, decreasing
Why do college graduates earn higher wages than non-graduates?
What will be an ideal response?