Incorporation of expectations into economic decision making indicates that in the long run:
a. inflation relates directly to unemployment.
b. inflation is inversely related to unemployment.
c. the Phillips curve is vertical at the natural rate of unemployment.
d. high unemployment is a primary cause of inflation.
c
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Which of the following would be classified as a fixed cost for the proprietor who owns and operates the local Texaco station?
A) the federal excise tax paid on each gallon of Texaco gasoline sold B) the state income tax on the profit earned C) the rent paid on the 10 year lease for the property on which the station is located D) the Social Security tax the owner pays the federal government on the owner's income
If a firm is experiencing diseconomies of scale, its long-run average cost curve is increasing
Indicate whether the statement is true or false