When all the conditions for perfect competition are met,
A. the system produces the goods and services consumers want.
B. final products are distributed among households efficiently.
C. resources are allocated among firms efficiently.
D. All of the above are correct.
Answer: D
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The shifts of the short-run and long-run Phillips curves in the figure above are the result of
A) an increase in the expected inflation rate. B) an increase in the natural unemployment rate. C) a decrease in the natural unemployment rate. D) an increase in the actual inflation rate. E) a decrease in the expected inflation rate.
The natural rate hypothesis asserts that in the ________, the money wage rate is fixed and the ________ in the inflation rate brings a(n) ________ in the unemployment rate
A) short-run; decrease; increase B) short-run; increase; increase C) short-run; decrease; decrease D) short-run; increase; decrease E) long-run; increase; decrease
The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit
Indicate whether the statement is true or false
Which of the following statements is correct? Most economists
A. think that protectionism is a vital and necessary component in a nation's economic policy. B. prefer to let the market forces of supply and demand solve trade imbalances. C. believe that tariffs and quotas are efficient and effective measures. D. believe product standards, export subsidies, and exchange controls are desirable trade practices, but quotas and tariffs only provoke retaliation.