Which of the following is an example of the "shoe-leather costs" of inflation?
A) a rise in the cost of primary raw materials, like leather for shoes
B) an artificial rise in the capital gains tax
C) the need to take more trips to the bank
D) miscalculations due to money illusion
E) All of the above
C
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Which of the following statements about the public debt is TRUE?
A) It is equal to the budget deficit. B) It decreases when the government runs a budget deficit. C) It is a stock variable. D) all of the above
In a(n) __________ insurance policy, the savings component pays a money market rate of interest that changes with market conditions
A) whole B) term C) universal D) variable
There are two independent dealers for Sporto automobiles in a large city
The dealers decide to run a cooperative advertising campaign in which both dealers are listed in local newspapers ads, and they can purchase larger ads that are more likely to attract attention and generate more auto sales if the dealers commit more funds to the joint advertising budget. Is this an example of a cooperative constant-sum game? A) Yes, each firm can contribute zero to 100 percent of the advertising budget, so this is a constant-sum game. B) Yes, all negotiated outcomes between two firms are cooperative and constant-sum situations. C) No, the outcome of the advertising campaign depends on how much money the firms contribute to the campaign, so it is not constant sum. D) No, the firms are independent, so their interaction cannot be cooperative.
Average fixed costs:
A. are a constant, regardless of quantity of output. B. always trend downward as output increases. C. are a vertical line. D. always trend upward as output increases.