If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate supply increases, then data would show
a. a cyclical relationship between inflation and unemployment.
b. a direct relationship between inflation and unemployment.
c. an inverse relationship between inflation and unemployment.
d. no relationship between inflation and unemployment.
b
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Which of the following is TRUE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are not given any discretion in their decision making c. Profit centers often largely run by themselves without a lot of executive oversight d. A manager being rewarded on division revenues has no incentive to make good decisions for his division
With a corrective tax, the supply curve for pollution is
a. vertical. b. horizontal. c. upward-sloping. d. downward-sloping.
In a market system, well-defined property rights are important because they:
A. encourage economic activity. B. limit destructive economic growth. C. create economic problems. D. reduce unnecessary investment.
Which of the following statements is false?
A. If economic profit is negative, accounting profit must also be negative. B. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. C. If economic profit is positive, accounting profit must also be positive. D. When economic profit is zero, the firm's owners could not have done better putting their resources in some other industry of comparable risk. E. None of the above statements is false.