Which of the following examples most likely indicates hyperinflation?
a. The price of theater tickets increases 5 percent over the past ten years.
b. A grocery manager changes the price of produce three times in one day.
c. The price of CDs drops from $15 each to $7 each in two months.
d. A customer complains about the price of gas at a station increasing more than at other stations.
b. A grocery manager changes the price of produce three times in one day.
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The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
a. perfectly elastic. b. elastic. c. perfectly inelastic. d. unitary elastic.
The equilibrium price is the price
A. suppliers agree to charge. B. where there are surpluses and shortages. C. at which quantity supplied equals quantity demanded. D. from which there is always a tendency to move away.
Many economists argue that real GDP is NOT a good measure of economic well-being because
A. it includes the taxes we pay to the federal government. B. it excludes the environmental quality of life. C. it overvalues the increases in nonmarket transactions. D. it excludes Social Security payments made to retirees.
________ is buying a country's currency spot and selling that country's currency forward, to make a net profit from the combination of the difference in interest rates between countries and the forward premium on the country's currency.
A. Uncovered interest parity B. Covered interest arbitrage C. Uncovered interest arbitrage D. Covered interest parity