Inflation is best defined as
A) a sustained increase in the price of ALL goods and services in an economy.
B) a relative price increase.
C) a sustained increase in the average of all prices of goods and services in an economy.
D) a sustained increase in the price of a single good or service.
C
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Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called
a. a compensating differential. b. an efficiency wage. c. discrimination. d. compensating variation.
Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market?
The Consumer Price Index is due for a major overhaul mainly because it is
A. overestimating the annual inflation rate by over 2%. B. overestimating the annual inflation rate by over 1%. C. underestimating the annual inflation rate by under 2%. D. underestimating the annual inflation rate by over 2%.
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 9%, Nashbar Bicycle's total investment would be
A. $200,000. B. $300,000. C. $900,000. D. $1,100,000.