Economists use the term variable costs to refer to
a. prices of inputs that are subject to sudden change, like fuel.
b. an increase in the price of any input.
c. costs that vary with the type of final product being produced.
d. costs that vary with the quantity of output produced.
d. costs that vary with the quantity of output produced.
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A decrease in the unemployment rate which is accompanied by an increase in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
In a principal-agent problem, if the contract used leads to the maximum of the principal's and agent's combined value (profits, payoffs), we can say that this contract features
A) inefficiency in production, since only the principal's profits should be maximized. B) inefficiency in production, since only the agent's payoffs should be maximized. C) efficiency in production. D) inefficiency in production, since the agent's payoffs should be maximized and the principal's profits should be minimized.