According to the policy irrelevance proposition
A. expansionary monetary policy will only lead to a higher rate of inflation in the long run.
B. monetary policy can effectively reduce the rate of unemployment in the short run.
C. workers are not rational in the long run.
D. the Phillips curve slopes upward, not downward as traditionally assumed.
Answer: A
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A market structure in which identical goods are produced by several different firms and sold at the market determined price is referred to as:
A) an oligopoly. B) a monopoly. C) perfect competition. D) monopolistic competition.
Which of the following goods would show up in the Consumer Price Index (CPI) but not in the GDP deflator?
a. aspirin b. commercial U.S. aircraft c. Italian designer eyewear d. cell phones
How does the firm-specific demand curve in a perfectly competitive market compare to that in a monopoly?
A. The firm-specific demand curve in a perfectly competitive market is horizontal. The demand curve in a monopoly is downward sloping. B. They are the same. C. The firm-specific demand curve in a perfectly competitive market is horizontal. The demand curve in a monopoly is upward sloping. D. The firm-specific demand curve in a perfectly competitive market is vertical. The demand curve in a monopoly is horizontal.
Assuming labor is the only variable factor of production, production of a good will occur
A. as long as the product's price is greater than the marginal revenue product of labor. B. as long as the marginal revenue product of labor is positive. C. if society values a good more than it costs firms to hire the workers to produce the good. D. if the marginal cost of a unit of output equals the marginal revenue product of labor.