In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the quantity demanded of tea." (II) "An increase in the price of tea will reduce the demand for sugar used in tea."
a. in both statements I and II
b. in statement I only
c. in statement II only
d. in neither statements I nor II
A
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In the long run, ________ dominate exchange rate movements
A) short-run inflation differentials B) long-run inflation differentials C) short-run relative price changes D) All of the above
It is argued that high-tech industries typically generate new technologies but cannot fully appropriate the commercial benefits associated with their inventions or discoveries
If this is true then in order to maximize a country's real income, the government should A) tax the high-tech firms. B) subsidize the high-tech firms. C) protect the high-tech firms. D) outsource high-tech production. E) discourage high-tech investments.
The menu cost of inflation involves
A) the mistakes producers make in adjusting prices. B) the mistake people make when they do not know the actual rate of inflation. C) cost-of-living adjustments. D) the costs associated with changing price lists.
The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the:
a. complete information possessed by workers. b. volatility of investment spending. c. existence of long-term contracts. d. all of these choices.