Hyperinflations occur because governments want to spend more than they raise in taxes, and they pay for the extra purchases by printing money
Indicate whether the statement is true or false
TRUE
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If firms pay employees an efficiency wage: a. absenteeism would be expected to decrease. b. turnover would be expected to increase
c. training costs would likely increase. d. more shirking on the job is likely to occur.
Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not human capital decisions. b. different in that human capital decisions do not involve future income considerations while physical capital investments do. c. similar in that non-pecuniary considerations do not influence the choices of utility-maximizing decision makers in either case. d. similar in that both involve forgoing current income (and consumption) with the objective of increasing one's future income (and consumption).
Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?
a. What cost $100 in 1982 on average cost 270 times as much in 2019. b. What cost $100 in 1982 on average cost $270 in 2019. c. What cost $100 in 1982 on average cost 0.27 times as much in 2019. d. What cost $100 in 1982 on average cost $27 more in 2019
Ultimately, trade agreements are necessary because
A. farmers need to be assured of access to foreign markets. B. exports make everyone worse off. C. tariff reduction can be politically popular within many countries. D. tariff reduction can be politically unpopular within many countries.