Which of the following prices could represent Eli's willingness to pay for a baseball glove if he observed the market price of $43 and decided not to buy one?
A. $37
B. $45
C. $50
D. None of these could represent Eli's willingness to pay.
A. $37
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If you accept the rational expectations hypothesis as accurate, what would you tell monetary policy makers who ask you how to more effectively manage the economy?
A) Individuals do understand how monetary policy works, so consistency and predictability are the keys to effective policy making. B) Only unanticipated policies will be effective once individuals understand how monetary policy works. C) Consumers do not understand the workings of monetary policy, so discretionary and nondiscretionary policies are equally effective. D) Individuals base their economic expectations solely on current information, so repeating policy decisions that have worked in the past is the most effective path to take.
In the presence of asymmetric information, high-cost and low-cost customers are charged ?asymmetric prices.
Answer the following statement true (T) or false (F)
In the long run, the Phillips curve is a ________ at ________
A) horizontal line; 0% inflation B) vertical line; the natural rate of unemployment C) vertical line; the expected rate of inflation D) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply
Often trade will not occur because
a. transaction costs are too high b. neither party has an opportunity cost c. the benefits to one party just equal the losses to the other party d. no one expects to gain from the trade e. the profits of the firm are excessive