Unanticipated inflation occurs when
A) everyone knows perfectly the true rate of inflation.
B) the actual inflation rate differs from the anticipated inflation rate.
C) the inflation rate is zero.
D) there is no change in the purchasing power of money.
B
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The figure above shows the demand and cost curves for a single-price monopoly. The firm will produce ________ units and set a price of ________ per unit
A) 15; $20 B) 10; $20 C) 10; $30 D) None of the above answers is correct.
If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost
A) economic efficiency will be increased if further reductions are made. B) pollution taxes should be imposed on producers to pay for further reductions. C) further reductions will make society better off. D) further reduction will make society worse off.
If Ernie's individual labor supply curve is upward sloping, then Ernie responds to an increase in the
a. wage by working more hours per week. b. opportunity cost of leisure by working fewer hours per week. c. opportunity cost of leisure by taking more hours of leisure per week. d. Both a and b are correct.
At one time, most compact trucks (like the Toyota Tacoma) were imported under the classification "cab and chassis with some final assembly needed." These were classified as ___________ with a tariff of ______.
a. complete or unfinished trucks; 4% b. complete or unfinished trucks; 25% c. parts of trucks; 25% d. parts of trucks; 4%