In the long run,
a. the natural rate of unemployment depends primarily on the level of aggregate demand.
b. inflation depends primarily upon the money supply growth rate.
c. there is a tradeoff between the inflation rate and the natural rate of unemployment.
d. All of the above are correct.
Ans: b. inflation depends primarily upon the money supply growth rate.
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Explain briefly the vent-for-surplus theory of international trade. What is the relevance of this theory to the current development experience of low-income economies?
What will be an ideal response?
In the absence of well-defined property rights, we would likely find
A) people with more incentives to take risks. B) people with less incentives to take risks. C) higher economic growth rates. D) increases in investment activity.
Curve A is always declining because
a. marginal product first decreases, then increases b. of diminishing marginal product. c. we are dividing fixed costs by higher and higher levels of output. d. marginal product first increases, then decreases.
If an employer pays employees according to the volume of business revenue they individually generate, then the employer is applying the
A. contributive standard. B. productivity standard. C. merit standard. D. all of these.