The money, time, and opportunity used to change prices to keep pace with inflation are called:
A. the velocity of inflation.
B. menu costs.
C. shoe-leather costs.
D. tax distortions.
Answer: B
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Which of these statements are FALSE
a. If production exhibits diseconomies of scope, firm should reduce the number of products to reduce costs. b. If production exhibits diseconomies of scope, firm should increase the number of products to reduce costs. c. If production exhibits economies of scope, firm should increase the number of products to reduce costs. d. If production exhibits economies of scope, firm should increase the number of products to reduce costs.
In the monopoly market structure, new firms
a. cannot profitably enter the industry, even in the long run b. may freely enter and leave the industry in both the short run and the long run c. may freely enter and leave the industry in the long run only d. may freely enter and leave the industry in the short run only e. have no incentive to enter the industry, even if economic profits are present
The central reason why there are gains from international trade is because
A. trading allows otherwise unemployed people to have jobs. B. the rate of interest is not the same in all countries. C. resources are not equally distributed to all nations. D. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.