Recall the Application about the attempt to form a salt cartel in the 19th century to answer the following question(s).According to the Application, what was the objective of firms when they created salt pools?
A. To decrease competition and keep prices uniformly high.
B. To decrease competition and keep prices uniformly low.
C. To lobby the state governments to prevent salt from other states to enter.
D. To give support to financially troubled salt mines.
Answer: A
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In the United States, the Phillips curve is not stable in that
A) the intercept of the Phillips curve changes over time, but the slope does not change. B) the intercept and slope of the observed Phillips curve change over time. C) the slope of the Phillips curve changes, but its intercept does not change. D) it changes from a curve to a circle.
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. All else equal, if the price of each input decreased from $30 to $20, productivity would:
A. increase from $50 to $60 and aggregate supply would decrease. B. increase from $60 to $70 and aggregate supply would increase. C. increase from $40 to $90 and aggregate supply would decrease. D. remain unchanged and aggregate supply would increase.
The opportunity cost of attending college might best be described as
A) the money that must be paid in order to attend college. B) the lowest-valued alternative use of the student's time. C) the highest-valued alternative use of the student's time. D) the value that the student attaches to not working.
The debt-to-GDP ratio will tend to decline over time when
A) r > g. B) r < g. C) the primary deficit increases. D) the initial level of debt increases.