Why does inflation cause problems in a society?
A) It gives people an incentive to hold money rather than spend it and provide income for others.
B) It makes everything more expensive in real terms.
C) People aren't able to anticipate it accurately.
D) The cost of living rises for almost everyone in an inflation.
E) For all of the above reasons.
C
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Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is
A) 20. B) 40. C) 80. D) Long-run average cost is constant at all levels of output.
Jack Sprat could eat no fat, his wife could eat no lean. And so betwixt them both, they licked the platter clean. Which of the following is true about Jack and his wife?
A. Marginal utility of fat is falling for Jack; marginal utility of lean is falling for his wife. B. Marginal utility of fat is negative for Jack; marginal utility of lean is negative for his wife. C. Marginal utility of lean is negative for Jack; marginal utility of fat is negative for his wife. D. Marginal utility of lean is rising for Jack; marginal utility of fat is rising for his wife.
The nondiscriminating pure monopolist's demand curve:
A. is the industry demand curve. B. shows a direct or positive relationship between price and quantity demanded. C. tends to be inelastic at high prices and elastic at low prices. D. is identical to its marginal revenue curve.
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will
A. remain at AC. B. swivel toward AO. C. swivel toward AB. D. swivel toward AD.