A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with ________ had lower inflation rates than countries with ________
A) a large government debt; little to no government debt
B) highly independent central banks; central banks that have little independence
C) low rates of unemployment; high rates of unemployment
D) no private banking system; an independent banking system
B
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A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500th unit of output is $14.50; and the average total cost of producing the 500th unit of output is $9.50 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
Which of the following both make the sacrifice ratio higher than otherwise?
a. the Phillips curve is steep, inflation expectations adjust quickly. b. the Phillips curve is steep, inflation expectations adjust slowly. c. the Phillips curve is flat, inflation expectations adjust quickly d. the Phillips curve is flat, inflation expectations adjust slowly.
In what way does monopolistic competition favor consumers?
A) A limited number of sellers differentiate their products or services by offering better quality items and/or greater incentives to purchase them. B) A large number of sellers providing virtually identical products means that no single seller can set the price. C) A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices. D) A single seller or provider ensures consistency of product quality and regulated pricing. E) A large number of sellers of virtually identical products means that no single seller can set the price for these products.
Your Uncle Harry gives you stock in Samsung for your birthday. The stock is an example of:
A. foreign direct investment. B. importing. C. foreign portfolio investment. D. exporting.