When oil and energy prices rise, the economy tends to experience:
A. Natural inflation
B. Demand-pull inflation
C. Cost-push inflation
D. Unanticipated inflation
C. Cost-push inflation
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A family of four with one wage earner who earns the minimum hourly wage would be
A. well below the poverty line. B. slightly below the poverty line. C. slightly above the poverty line. D. well above the poverty line.
Capital deepening causes ________ in the demand for labor
A) a decrease B) an increase C) no change D) either an increase or decrease
If total consumer expenditures (in dollars) for bus transportation were to increase when the price of bus transportation was raised, the demand for bus transportation probably
A) had decreased. B) had increased. C) violated the law of demand. D) was elastic. E) was inelastic.
If fears of a terrorist attack are widespread and people lose faith in money, the economy could revert to a system of
A. cash and checks. B. double-entry bookkeeping. C. barter. D. financial intermediaries.