Economists use the term ______ to refer to an increase in the overall level of prices in the economy
Fill in the blank(s) with correct word
Inflation
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The stock market showed a PE for Alibaba equal to 32. What does PE mean?
A) price-earnings ratio B) profit-earnings ratio C) perfect-earnings ratio D) price-equity ratio
Nick has $300 a month to spend on detailing his sports car or buying bottles of good wine. It costs $100 to have his car detailed and $50 for a bottle of wine. He currently buys four bottles of wine and has his car detailed once a month. If the price of detailing his car decreased to $75, Nick's budget constraint:
A. would shift straight outward, because he is relatively wealthier. B. would rotate and change slope because relative prices have changed. C. would shift straight inward because he is relatively wealthier. D. One cannot determine what would happen without knowing Nick's marginal utility of each good.
According to economist Schumpeter, the first step in entrepreneurial growth is:
a. little competition b. monopoly power c. zero economic profits d. creative destruction
Helium Sports produces shoes at a factory that is designed to work at the efficient scale of production using a combination of 2 machines and 400 workers. The cost of labor has recently increased by 25%. In the given situation, which of the following steps should the company take?
a. Helium Sports should reduce production quantity to keep costs under control. b. Helium Sports should lower prices on their shoes to increase demand. c. Helium Sports should make changes to lower the opportunity costs. d. Helium Sports should update the factory with machines that require fewer workers.