The natural rate hypothesis asserts that in the ________, the money wage rate is fixed and the ________ in the inflation rate brings a(n) ________ in the unemployment rate
A) short-run; decrease; increase
B) short-run; increase; increase
C) short-run; decrease; decrease
D) short-run; increase; decrease
E) long-run; increase; decrease
D
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In the above figure, the intersection of curves A and B is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
For a nation to engage in international trade on the basis of comparative advantage, it should
A. purchase resources from other nations until it acquires a comparative advantage in at least one product. B. produce only those goods in which it has an absolute advantage over other nations. C. specialize in producing those products that have the lowest opportunity cost per unit compared to other nations, then trade some if its output. D. specialize in the production of those goods that have the highest opportunity cost, then trade the excess output.
Imperfect asset substitutability exists
A) when it is possible for the expected returns on two assets to be different. B) when the expected returns on two assets are the same. C) only when one asset is foreign and the other is domestic. D) when there is risk in the foreign exchange market. E) when assets are liquid.
Mr. Anderson received a producer surplus of $1,000 when he sold his watch. If the market price of the watch was $3,000 . he was willing to sell the watch for _____
a. $4,000 b. $2,000 c. $1,000 d. $3,000