Higher prices and price increases combined with lower real output and income, resulting from a major increase in input prices in the economy is called:
A) deflation.
B) inflation.
C) stagflation.
D) none of the above.
C
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Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the labor force in this economy?
A. 200 million B. 800 million C. 80 million D. 1.0 billion
According to the text, _________ is a good example of positive institutional change and _________ is an example of destructive institutional change in regard to economic and political institutions.
a. Atlanta, Detroit b. China, Zimbabwe c. Mexico, New Zealand d. Indiana, Missouri
When the government bans a good it:
A. creates a more efficient solution than any other to the nonexcludability problem. B. is an easy, but often ineffective, solution to the nonexcludability problem. C. increases surplus more than any other solution to the nonexcludability problem. D. is the easiest and most effective solution to the nonexcludability problem.
Economists assume that most individuals act as if they are motivated by self-interest and respond in predictable ways to changing circumstances
a. True b. False Indicate whether the statement is true or false