Which of the following might cause the inflation rate to spike up sharply?
(A) Prices on world oil markets rise steeply due to war in the Middle East.
(B) Plentiful rainfall and moderate temperatures result in good harvests of wheat and soybeans.
(C) The purchasing power of the average consumer decreases due to a sluggish economy.
(D) The items in the CPI market basket change to account for changing consumer buying habits.
Ans: (A) Prices on world oil markets rise steeply due to war in the Middle East.
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The Arrow impossibility theorem states that
A) it is impossible for a majority voting system not to consistently represent the preferences of voters. B) it is impossible to separate corporate desires from public bureaucracy. C) no system of voting can be devised that will ensure a 100 percent voter turnout. D) no system of voting can be devised that will always consistently represent the underlying preferences of voters.
A trademark is
A) a legal instrument which grants a firm the right to differentiate its product. B) a legal right to position a firm's product in high-traffic public areas such as airports and post offices. C) a distinguishing attribute such as a sign or logo that allows a firm to uniquely identify its product. D) a patent on a firm's product.
Regulation Q was rendered ineffective by the invention of
A) negotiable CDs. B) commercial paper. C) 401(k) plans. D) money market mutual funds.
Toyota's just-in-time system is an example of
A) backward (upstream) integration. B) quasi-vertical integration. C) using transfer pricing to avoid price controls. D) horizontal, downstream integration.