Give, and explain, an example of conflict between objectives in considering an investment proposal
What will be an ideal response?
Perhaps the most obvious conflict mentioned in the chapter is between maximizing output and maximizing employment. A broader response, involving private vs. social returns, can also be used.
Economics
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If a 1 percent decrease in the price of a pound of oranges results in a smaller percentage decrease in the quantity supplied
A) demand is elastic. B) demand is inelastic. C) supply is elastic. D) supply is inelastic.
Economics
According to the theory of rational expectations, when it comes to expected changes in the inflation rate, the short-run Phillips curve would be: a. vertical
b. horizontal. c. upward sloping. d. downward sloping.
Economics