From November 1993 to December 1994, the Democratic Republic of the Congo experienced an inflation rate of 69,502 percent. This economic condition would best be described as:
A. cost-push inflation.
B. hyperinflation.
C. anticipated inflation.
D. a cost-of-living adjustment.
Answer: B
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The production possibilities frontier can be used to show all of the following except one. Which is the exception?
a. scarcity b. opportunity cost c. the law of increasing opportunity cost d. efficiency e. the best combination of goods and services for an economy
A physician who laid off her nurse and receptionist and performed their tasks herself would probably
A) decrease her accounting profit but increase her economic profit. B) decrease her profit from the economist's point of view even if she increased her accounting profit. C) increase both her accounting and economic profit if her practice was a busy one. D) wind up with lower labor costs unless the layoff greatly increased the demand for her professional services. E) work more efficiently in order to get everything done.
In the above table, suppose imports = $750 billion and government expenditures = $1,000 billion. Hence investment equals
A) -$500 billion. B) $1,000 billion. C) $500 billion. D) $0.
Using Scenario 2 suppose Bill has eliminated one of the answers but is unsure of which of the remaining four answers are correct. Determine whether it is rational for Bill to guess
What will be an ideal response?