If inflation expectations rise, the short-run Phillips curve shifts
a. left. If inflation remains the same, unemployment falls.
b. left. If inflation remains the same, unemployment rises.
c. right. If inflation remains the same, unemployment falls.
d. right. If inflation remains the same, unemployment rises.
d
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When there are positive externalities associated with the consumption of a good, we can expect the market:
a. demand curve to lie above the social demand curve. b. demand curve to lie below the social demand curve. c. supply curve to lie above the social supply curve. d. supply curve to lie below the social supply curve. e. demand curve to lie below the social supply curve.
When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for buns (using the initial value formula) is:
A. 1.4. B. 0.5. C. -0.5. D. -1.4.
Which one of the following was the strategy followed by Japanese industrialists after World War II?
A. They sold low-priced goods to the low end of the American market while they rebuilt their industrial base. B. They charged Japanese consumers much lower prices than they charged American consumers, since Americans could afford to pay more for these goods. C. They sold high-priced goods to the high end of the American market, leaving the low end to Korea and Taiwan. D. They received tens of billions of dollars in aid from the U.S. government and have still not paid back a penny.
Sequential games are used to analyze
A) second-price auctions. B) cartels. C) situations in which one firm acts and other firms respond. D) firms that are subject to the prisoner's dilemma.