A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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Use the following figure to answer the question below.
The combination of zero pounds of corn and eighty pounds of green beans is
A. efficient. B. not attainable. C. inefficient. D. local.
If the price of a cola increased by 12% and consumers responded by purchasing 20% less cola, the absolute value of price elasticity of demand for cola would be
A) 0.20. B) 0.80. C) 1.67. D) 2.40.
At the time of his retirement, an individual was able of purchase a basket of goods for $100 . If the price index rises by 3 percent every year, he would require _____ to purchase the same basket of goods 5 years later
a. $103.5 b. $120 c. $150 d. $115.9
If the government imposes a per-unit tax on sales of an industry's product, then we would expect
A) the supply curve in that industry would shift to the left. B) the supply curve in that industry would shift to the right. C) the demand curve for that industry would shift to the right. D) the demand curve for that industry would shift to the left.