A reduction in inflation would lead to
a. more frequent price changes and increased variability of relative prices.
b. more frequent price changes and decreased variability of relative prices.
c. less frequent price changes and increased variability of relative prices.
d. less frequent price changes and decreased variability of relative prices.
d
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Which of the following is a reason why firms may be more efficient than markets as coordinators of economic activity?
A) economies of scale and scope B) lower transactions costs C) economies of team production D) all of the above
Refer to Figure 6-9. The data in the diagram indicates that DVDs are
A) luxury goods. B) inelastic goods. C) necessities. D) both luxury goods and inelastic goods. E) both necessities and inelastic goods.
Economists ________ that price controls are desirable
A) are reluctant to state B) never believe C) only recently agree D) are in agreement
Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.