The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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Answer the following statements true (T) or false (F)
1. Commissions or royalties may be an inexpensive way of reducing shirking on a job when the costs of monitoring work performance are high. 2. Firms that pay efficiency wages tend to have higher worker turnover. 3. The marginal productivity theory of resource demand suggests that those resources whose productivity levels are high will end up getting a higher share of the economy's income. 4. Income from inherited wealth and property resources provides strong support for the marginal productivity theory of income distribution.
For the farmer, 12.8 pounds of
A. meat is the opportunity cost of 16.0 pounds of potatoes. B. potatoes is the opportunity cost of 8.0 pounds of meat. C. meat is the opportunity cost of 10.6 pounds of potatoes. D. potatoes is the opportunity cost of 6.8 pounds of meat.