In the 1960s and early 1970s, many economists and policymakers thought the Phillips curve was
A. interesting, but had no theory behind it.
B. invalid and of no use to policymakers.
C. of no interest in making macroeconomic policy.
D. a “menu” of possible choices available to policymakers.
Answer: D
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If the price of a Swiss franc is $0.60, the price of a dollar is __________ Swiss francs
A) 0.40 B) 1.40 C) 1.67 D) 6.0
The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then
a. eliminating the first 20 tons of pollution is cheaper than eliminating the last 20 tons b. eliminating the last 20 tons of pollution is cheaper than eliminating the first 20 tons c. more damage will be done by the first 20 tons of pollution than by the last 20 tons d. more damage will be done by the last 20 tons of pollution than by the first 20 tons e. the optimal level of air quality is to reduce pollution by 700 tons