Which of the following statements is true?
A) If the opportunity cost of current consumption is high, people will save less.
B) If the opportunity cost of current consumption is high, the inflation rate will increase.
C) If the opportunity cost of current consumption is high, the unemployment rate will decrease.
D) If the opportunity cost of current consumption is high, people will save more.
D
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The producer price index is considered a good predictor of future consumer prices because increases in input prices:
A. eventually make it to consumers when they buy the final product. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. are used by consumers to make decisions on what to buy.
Over the last 50 years or so, the rate of growth of average working hours has been mostly negative
a. True b. False
Fairy Cakes sells birthday cakes in a perfectly competitive market where the market price is $25 per cake. If it decides to increase its production from 10 cakes a week to 12 cakes a week, its weekly revenue will _____
a. decrease by $50 a week b. increase by $25 a week c. increase by $50 a week d. decrease by $20 a week
If there are no barriers to entry into an industry
A) short-run economic profits must be zero. B) long-run economic profits must be zero. C) both short-run and long-run economic profits must be zero. D) short-run and long-run profits must still be positive.