The dynamic aggregate demand curve illustrates that the relationship between inflation and real output is:
A. direct.
B. undefined.
C. inverse.
D. independent.
Answer: C
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In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant. b. people's willingness to pay for a cleaner environment. c. the expense of installing new "green" equipment. d. the number of free riders in the industry.
Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision
a. might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. b. will help eliminate the excess supply of labor. c. may cause her workers to reduce the effort they expend at their jobs. d. All of the above are correct.
Which of the following is not associated with the monopoly market structure?
A. many sellers B. a single seller C. a unique product D. impossible entry into the market
Proposals for bilateral reduction of tariffs in the U.S. and Canada have been developed through
A. SDR. B. UNESCO. C. GATT. D. NAFTA.