If inflation is higher than anticipated and benefits are not indexed, which group loses purchasing power?
a. Borrowers and lenders
b. Lenders and retirees
c. Borrowers and retirees
d. Only borrowers
e. Only lenders
B
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Answer the following statement(s) true (T) or false (F)
1. An indifference curve is a construct used by economists to show how tastes for an individual change. 2. There are an infinite number of choices faced by a consumer that are shown along an indifference curve. 3. Indifference curves fill the fourth quadrant of the plane. 4. If the marginal value of beef is $8 per pound, then the consumer is willing to pay at most $8 for an additional pound of beef. 5. The marginal value of a good is the dollar value that the consumer receives, on average, from each unit of the good purchased.
Which of the following could increase unemployment and inflation simultaneously?
A) a decrease in the real wage B) an increase in oil prices C) expansionary monetary policy D) contractionary monetary policy
For a resource to be able to generate sustained competitive advantage over rivals, it must be
a. Valuable b. Rare c. Difficult to imitate or substitute away from d. All of the above
An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____
a. marginal cost; upward b. transaction cost; upward c. marginal cost; downward d. transaction cost; downward