Workers’ reluctance to take nominal pay cuts offers a feasible explanation of why the Phillips Curve relation breaks down when there is deflation.

a. true
b. false


Answer: a. true

Economics

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Governmental rules that significantly promoted entrepreneurship first became prominent during the

a. Great Recession. b. Age of Enlightenment. c. Great Depression. d. Industrial Revolution.

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In a monopolistically competitive market,

A. firms are small relative to the total market. B. no firm has any market power. C. there is easy entry and exit in the market.  D. a and b  E. a and c

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Refer to the graph below. All of the following development would allow a movement from point C to a point outside the production possibilities curve, except:



A. An increase in the supply of resource
B. An improvement in the quality of resources
C. A reduction in unemployment of resources
D. A technological advance

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A perfectly competitive firm's short-run supply curve is the same as its

A) ATC curve. B) MR curve. C) AVC curve. D) MC curve above the minimum of the AVC curve.

Economics