The problem of determining for whom to produce exists because:
A) government regulations prevent firms from producing the kinds of goods that consumers want.
B) a decision that one person or group will receive a good or service usually means that another person or group will not.
C) taxes on firms make it more costly for them to produce all the goods that people want.
D) taxes on consumers make it more difficult for them to buy all the goods they want.
Ans: B) a decision that one person or group will receive a good or service usually means that another person or group will not.
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Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
A) no relationship between the two curves. B) no tradeoff in either curve. C) a tradeoff in both curves. D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff. E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.
In the simultaneous move labor negotiation game:
a. The payoffs are always higher if you accommodate b. The payoffs are always higher if you bargain hard c. The payoffs from accommodating are only higher if your opponent bargains hard d. The payoffs from accommodating are only higher if your opponent accommodates