The only way standard of living can increase is through increases in labor productivity
a. True
b. False
Indicate whether the statement is true or false
False
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Under a gold standard, countries control
A) its flexible exchange rate. B) monetary policy oriented toward domestic goals. C) international capital movements. D) foreign inflationary policies. E) and avoid risks in international trade.
In a market economy, uncertain levels of inflation
A) make prices less useful as signals for resource allocation. B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers. C) balance out income redistribution in the long run. D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.
If a decrease in income increases the demand for a good, then the good is a(n)
a. substitute good. b. complementary good. c. normal good. d. inferior good.
Refer to the graph shown.
If suppliers can reduce output from M to L, the suppliers excluded from the market will lose the producer surplus shown by area:
A. F. B. D. C. E and F. D. E.