Money fails to act as a store of value when:
a. it is no longer backed by gold.
b. the inflation rate is very high.
c. the goods produced in an economy are indivisible.
d. the economy goes into a recession.
e. coins are replaced by paper money.
b
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If the Japanese government raised its budget deficit, then the yen would
a. depreciate and Japanese net exports would rise. b. depreciate and Japanese net exports would fall. c. appreciate and Japanese net exports would rise. d. appreciate and Japanese net exports would fall.
Hyperinflation is
A. The movement of taxpayers to higher tax brackets because of rising prices. B. A common problem in the United States. C. An inflation rate in excess of 20 percent, lasting at least one year. D. An inflation rate in excess of 200 percent, lasting at least one year.
The typical relationship between a worker's productivity and the worker's wage rate is
A) high productivity workers receive low wage rates. B) low productivity workers receive low wage rates. C) no link between productivity and wages earned. D) high productivity workers find that their jobs are often outsourced. E) that workers with high productivity need to have their high wages protected by tariffs.
Suppose a tax equal to the value of the marginal external cost at the optimal output is imposed on a pollution generating good. All of the following will result from the tax except
A) an increase in demand for the good. B) a decrease in the equilibrium quantity produced and consumed. C) an increase in the equilibrium market price. D) a decrease in market supply of the good.