The long-run Phillips Curve indicates that macroeconomic policies are effective in increasing output and keeping prices stable in the economy
Indicate whether the statement is true or false
false
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If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will
A) buy permits from other firms. B) sell permits to other firms. C) hold on to the permits they have been issued and not attempt to buy more. D) not be issued permits.
The income effect of a price change results in a
A) movement along the demand curve due to a change in relative prices. B) shift of the demand curve when income changes. C) shift of the demand curve due to a change in purchasing power brought about by the price change. D) movement along the demand curve due to a change in purchasing power brought about by the price change.
Barter requires
a. that the exchanged goods be portable b. that the exchanged goods be durable c. a double coincidence of wants d. that the exchange medium be divisible e. an effective middleman
The phrase "no such thing as a free lunch" means
a. people must face tradeoffs. b. rational people think at the margin. c. people respond to incentives. d. trade can make everyone better off.