If the market for Czech restaurants is making a large economic profit, which of the following examples would most likely be a direct consequence?
a. New French restaurants will enter the market.
b. Existing French restaurants will leave the market.
c. New Czech restaurants will enter the market.
d. Existing Czech restaurants will leave the market.
c. New Czech restaurants will enter the market.
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Moving along the short-run Phillips curve, as the unemployment rate increases, the inflation rate
A) initially increases and then decreases. B) remains unchanged. C) increases. D) decreases. E) initially decreases and then increases.
Why do college-educated workers get paid more than those without a college education? Provide at least two reasons, using economic reasoning.
What will be an ideal response?
In the case of perfectly inelastic demand,
a. the change in quantity demanded equals the change in price.
b. the percentage change in quantity demanded equals the percentage change in price.
c. infinitely-large changes in quantity demanded result from very small changes in the price.
d. quantity demanded stays the same whenever price changes.
According to the classical economists
A. a market economy should never experience unemployment. B. a market economy should never experience inflation. C. if unemployment appears, it would soon disappear because of a reduction in interest rates, wages, and prices. D. if inflation appeared it would soon disappear because of a reduction in interest rates, wages, and prices.