When inflation begins to rise, people can prevent their wealth from deteriorating by doing all of the following except
A) holding more cash.
B) converting their cash into foreign currencies.
C) spending their cash on goods and services.
D) investing in financial instruments such as stocks or precious metals.
A
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Total surplus is the sum of producer’s surplus and consumer’s surplus.
Answer the following statement true (T) or false (F)
Which of the following correctly describes the time-inconsistency problem?
a. The problem that arises when policy makers have an incentive to announce one policy to influence expectations, but then pursue different policy once those expectations have been formed and acted on. b. The problem that arises when the president and Congress have an incentive to pursue policies that are different from those of the Fed. c. The problem that arises when consumer preferences change frequently over time such that a product considered highly desirable at one point would be considered undesirable after sometime. d. The problem that arises when firms increase supply of a product in anticipation of future increase in demand for the product, but suffers a heavy loss because of a steep fall in demand.
Customers who visit convenience stores at 3 a.m. have a price elasticity of demand that is _____________ elastic than those who visit at 3 p.m.
A. more B. less
Experience rating systems for pricing insurance encourage firms to discriminate against older and disabled workers in their hiring practices.
Answer the following statement true (T) or false (F)