Deflation is defined as a situation in which
A) the rate of inflation is below 2 percent.
B) the average of all prices of goods and services in an economy is falling.
C) the value of the dollar is rising relative to other currencies.
D) the Gross Domestic Product's growth rate is less for a given quarter than it was for the prior quarter.
B
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Other things remaining the same, which of the following is likely to decrease both the wage rate and the number of workers hired in a tea estate?
A) An increase in the price of tea B) A decrease in the price of tea C) A decrease in the opportunity cost of leisure D) An increase in the opportunity cost of leisure
The sole proprietor faces a disadvantage of limited liability
Indicate whether the statement is true or false
Purchasing power parity is a good theory of explaining exchange rate behavior:
A. over both long and short periods. B. over periods lasting six to twelve months. C. over very short periods. D. over very long periods, such as decades.
The two most important actors of the economy are:
A. firms and -capital. B. exports and imports. C. households and firms. D. land and capital.