Inflation
a. leads people to use more resources to reduce money holdings. There is no way it can make labor markets work more efficiently.
b. leads people to use more resources to reduce money holdings. However, it can make labor markets work more efficiently.
c. leads people to use fewer resources to reduce money holdings. There is no way it can make labor markets work more efficiently
d. leads people to use fewer resources to reduce money holdings. However, it can make labor markets work more efficiently.
b
You might also like to view...
Healthcare price controls will lead to
a. more innovative healthcare treatments. b. waiting lines and lengthy delays for treatment. c. higher quality healthcare services. d. an increase in the supply of healthcare services.
In the graph, the difference between points d and e indicates that at $50M of R&D spending, the
A. marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced. B. marginal cost is less than the marginal benefit. Thus, R&D spending should be increased. C. marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased.
Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is
a. U.S. consumption purchases increase by $200 and U.S. GDP increases by $200. b. U.S. consumption purchases increase by $200 and U.S. GDP increases by $10,000. c. U.S. consumption purchases increase by $10,000 and U.S. GDP increases by $10,200. d. U.S. consumption purchases increase by $10,200 and U.S. GDP increases by $10,200.
Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 3.4. Which of the following is TRUE?
A) Artie has a comparative advantage in producing wind chimes but not sun dials. B) Artie has a comparative advantage in producing sun dials but not wind chimes. C) Artie has a comparative advantage in producing both goods. D) Artie does not have a comparative advantage in producing either good.