In 1973, the oil embargo sparked a wage-price spiral due to higher energy costs. In 2004, with a similar spike in oil prices, there was not a corresponding wage-price spiral because
A. the jump in prices did not last very long.
B. the economy avoids unanticipated inflation.
C. of alternative energy sources.
D. of heavy government regulation.
Answer: A
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The PE ratio for a stock is
A) the predicted earnings per share of the stock divided by its current yield. B) the current yield of the stock. C) the price of the stock divided by its earnings per share. D) the predicted volatility of the stock.
A labor union is a group of
a. employees who join together to improve their working conditions b. firms that join together to hire workers c. firms that work together to negotiate better prices in the market d. farmers who work together to receive better prices for their agricultural products e. workers and firm owners who join together to improve working conditions
The law of diminishing marginal utility states that total utility increases by smaller and smaller increments as more of a good is consumed
a. True b. False Indicate whether the statement is true or false
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: A sudden, unexpected surge in inflation in the United States causes reduced purchases of U.S. goods by foreigners.
A. a. B. b. C. c. D. d.