Unexpected inflation arbitrarily
A. "subsidizes" those who receive fixed money incomes.
B. "taxes" those who receive fixed money incomes.
C. "penalizes" those who borrow money.
D. "benefits" those who save money.
Answer: B
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Which of the following statements about the substitution effect of a price change is true?
a. It is caused by a change in relative prices. b. It affects the consumer's ability, rather than willingness, to purchase a good. c. It assumes that the consumer substitutes more expensive goods for cheaper ones when income increases. d. It is usually equal to the income effect. e. It may cause the consumer to buy less of the good when its price falls.
If U.S. prices increase relative to the rest of the world, we would expect:
A. net exports to increase. B. net exports to decrease. C. net exports to be unaffected. D. government spending to increase.
According to Maslow's Hierarchy of Needs, physiological is the most basic. What is the need that comes next?
a. Esteem
b. Self-Actualization
c. Belongingness and Love
d. Safety
In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted. Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as
A. a relatively large number of producers offering similar but differentiated products. B. a market situation in which a large number of firms produce identical products. C. a relatively small number of producers offering similar but differentiated products. D. a market situation in which a small number of firms produce similar products.