Which of the following is true about inflation?
a. Inflation promotes social harmony by uniting people against the government
b. Inflation is more damaging if it is unanticipated.
c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
d. Those who lend money at a rate above the rate of inflation suffer economic losses.
e. If people accurately anticipate inflation, their actions will prevent it.
b
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Answer the following statement(s) true (T) or false (F)
1. The Good Samaritan Rule dictates that if a person witnesses a crime, they must assist the person against whom the crime is being committed. 2. It is always best to be the strong pig in Pigs in a Box. 3. For a Nash equilibrium to exist, at least one player must have a dominant strategy. 4. An outcome is not a Nash equilibrium if either player would be better off with a different strategy. 5. A player has a dominant strategy when there is one strategy the player would want to follow regardless of the other player's behavior.
An industry analyst observes that in response to a small increase in price, a competitive firm's output sometimes rises a little and sometimes a lot. The best explanation for this finding is that
A) the firm's marginal cost curve is random. B) the firm's marginal cost curve has a very small positive slope. C) the firm's marginal cost has a very large positive slope. D) the firm's marginal cost curve is horizontal for some ranges of output and rises in steps. E) the firm's marginal cost curve is downward sloping.
You have $20,000 of current income and $45,000 of future income. The interest rate between the current and future period is 2 percent. What is the maximum amount you could consume in the future?
A. 65,400 B. 20,400 C. 65,000 D. 69,000
Which of the following is not included in GDP but is included in GNP?
A. A foreign company's production in the United States B. Sales of a good by one firm to another firm C. Income of a citizen of Germany working in the United States D. Economic activity of U.S. citizens working abroad