Steve and Karen decide to attend the same concert when they are each given free tickets to it. We know that
A) both bear the same opportunity cost because they are seeing the same thing.
B) both bear the same opportunity cost because the tickets have the same face value.
C) both bear an opportunity cost that depends on what each person is giving up to attend the concert.
D) neither bears an opportunity cost since the tickets were given free to them.
C
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In his book Power and Prosperity, the economist Mancur Olson theorized that a country is better off under a dictator who maintains power for a long period, such as Mobutu, than under a short-term, unstable dictatorship
Olson maintained that, while both are very undesirable forms of government, the former is less disruptive to the economy than the latter.Discuss why this assertion may or may not be true.
Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?
A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation D) all of the above E) none of the above