Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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Minimum efficient scale is defined as the level of output at which the short-run average total cost stops decreasing
Indicate whether the statement is true or false
If velocity is more stable than the IS curve, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates. b. has the same effects as targeting interest rates. c. will be less effective in stabilizing aggregate demand than targeting interest rates. d. is not possible.
The term "capitalism" refers to which of the following?
a. A religion based on amassing capital. b. An economic system characterized by private ownership of resources, and decentralized market allocation. c. An economic system characterized by government ownership of resources and centralized allocation. d. None of the above answers are correct.
Cheese is priced at $5 per pound and wine at $10 per bottle. A consumer who enjoys both cheese and wine will not be in consumer equilibrium until the marginal utility of a pound of cheese is:
a. four times that of wine. b. one-fourth that of wine. c. two times that of wine. d. one-half that of wine.