When inflation causes the absolute prices of all commodities to rise, what happens to the relative prices of those commodities?
a. The relative prices also rise.
b. When absolute prices rise, the corresponding relative prices fall.
c. The relative prices are unaffected by changes in absolute prices.
d. No prediction can be made about changes in relative prices.
d. No prediction can be made about changes in relative prices.
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Haiti was once heavily forested. Today, 80 percent of Haiti's forests have been cut down, primarily to be burned to create charcoal. The reduction in the number of trees has led to devastating floods when it rains heavily. This is an example of
A) the tragedy of the commons. B) tragic externalities. C) human greed. D) the consequences of too many people having private property rights.
Explain how the marginal product and average product of labor change as the labor employed increases (a) initially and (b) eventually
What will be an ideal response?
If a firm hires labor for $20,000, pays rent of $12,000, buys raw materials for $6,000 from another firm, earns profits of $3,000, and sells its output for $41,000, the value added by the firm is _____
a. $0 b. $15,000 c. $35,000 d. $38,000 e. $41,000
When wages decrease a. the substitution effect increases the quantity of labor supplied. b. the substitution effect increases the supply of labor
c. the income effect increases the quantity of labor supplied. d. the income effect increases the supply of labor.