Assume that movement from point A to point B represents a 25 percent change in the price level. What would be the corresponding short-run change in the price of inputs?
a. 100 percent
b. 50 percent
c. 25 percent
d. no change
d. no change
You might also like to view...
Suppose that the U.S. exchange rate is expected to fall in the future. As a result, in the foreign exchange market, there will be
A) an increase in the demand for dollars, a decrease in the supply of dollars, and a rise in the equilibrium exchange rate. B) an increase in the demand for dollars, a decrease in the supply of dollars, and a fall in the equilibrium exchange rate. C) a decrease in the demand for dollars, an increase in the supply of dollars, and a rise in the equilibrium exchange rate. D) a decrease in the demand for dollars, an increase in the supply of dollars, and a fall in the equilibrium exchange rate.
What is meant by the term "internalizing an externality"? How does a Pigovian tax or subsidy internalize an externality?
What will be an ideal response?
In game theory, the strategy that results in the highest payoff to a player regardless of what the other player decides to do is called the:
A) Stackleberg equilibrium. B) equilibrium strategy. C) min-max strategy. D) dominant strategy.
Economics is the study of the allocation of scarce resources and scarce time, and the ways in which people utilize those resources or that time
a. True b. False Indicate whether the statement is true or false