Which of the following is a true statement?
a. Unanticipated inflation is a change in the general level of prices that catches most decision makers by surprise.
b. High and variable rates of inflation are easy for decision makers to forecast accurately.
c. High and variable rates of inflation can increase GDP by reducing investment.
d. When decision-makers are able to anticipate slow, steady rates of inflation, prices become more unstable and there is a negative impact on the level of prosperity.
A
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Answer the following statement(s) true (T) or false (F)
1. When a competitive firm earns zero profit, the market price is equal to both the firm's average and marginal costs. 2. In a competitive constant-cost industry, all firms have the same break-even price. 3. A government subsidy would allow all firms in a competitive constant-cost industry to earn a positive profit in the long run. 4. Sunk costs cannot affect a firm's short-run supply, but they can affect its long-run decision to exit the industry. 5. If the market price is currently above the shut-down price, the firm will be making positive profits.
Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
A. The quantity of eggs demanded will increase. B. Egg demand will decrease. C. Egg supply will increase. D. Egg supply will decrease.
Economics is the study of
A) nonhuman phenomena. B) the determinants of preferences. C) scarce resources and unlimited wants. D) the physical sciences.
Low-income countries are largely responsible for excess carbon dioxide emissions globally
Indicate whether the statement is true or false