If a product can be produced by a natural monopoly, society will benefit in the form of lower prices if the monopolist is broken up into several smaller firms
a. True
b. False
Indicate whether the statement is true or false
False
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If the prices of the goods and services contained in the CPI market basket increase from the base period to the next year, we know that
A) the market basket used by the BLS must be changed next year to reflect consumers' new expenditures. B) the next year's CPI will be below 100. C) the next year's CPI will be above 100. D) the inflation rate is falling. E) the cost of the CPI market basket at next year's prices is lower than the cost of the CPI market basket at base period prices.
Gretchen expects the price level to rise from 104 this year to 108 next year, and she is able to incorporate these expectations into her wage contract. If the price level rises to 106 next year instead of 108, which of the following will occur?
A) Gretchen's real wage may rise or fall, depending on the unemployment rate. B) Gretchen's real wage will rise. C) Gretchen's real wage will fall. D) Gretchen's real wage will be unchanged.
In which case would you be most likely to expect inflation to occur?
A) The government runs a sustained government deficit by lowering taxes. B) The government runs a sustained government deficit by increasing purchases. C) The government runs a sustained primary deficit by increasing purchases. D) The government funds its sustained deficit by increasing the money supply.
If the least wealthy person in a society has millions of dollars, should we still consider that person poor?
What will be an ideal response?