Due to the distortionary effects of inflation, capital investment may be reduced due to higher price levels
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S
assets to ________ and the U.S. dollar would ________. A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Adam Smith (1776) claimed that less governmental regulation, not more, would provide incentives for individuals to allocate resources efficiently, specialize and trade
Specialization and trade would generate wealth and result in economic growth and development. Indicate whether the statement is true or false
Economists prefer to look at declared preferences (how they say they behave) rather than revealed preferences (how people actually behave)
a. True b. False Indicate whether the statement is true or false
Which of the following lists contains, in this order, natural resources, physical capital, and human capital?
a. For a shoe factory: leather, hand tools, the managers' knowledge of shoe making. b. For a steel mill: the blast furnaces, iron ore, the workers. c. For an airline: oil used to make jet fuel, the pilots' knowledge of flying, jets. d. None of the above is correct.