Which of the following measures gives the earliest warning of increasing inflation?
A. the Producer Price Index
B. the Personal Consumption Expenditure Index
C. the Consumer Price Index
D. All of these should signal the same short-run inflation.
Answer: B
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Buying a monopoly from the existing owner does not ensure an economic profit because
A) the market for monopolies is a monopoly. B) competition among buyers drives up the cost of buying the firm. C) profits equal zero in the long run anyway. D) of the deadweight loss triangle.
List two implications of rent-seeking behavior
What will be an ideal response?
Colin consumes both corned beef sandwiches and steak sandwiches. Corned beef is priced at $5.00 per sandwich and steak sandwiches are priced at $8.00 . Which of the following marginal utility pairs is consistent with Colin's consumer equilibrium at these prices?
a. MU of corned beef sandwich = 1; MU of steak sandwich = 1 b. MU of corned beef sandwich = 1; MU of steak sandwich = 1.6 c. MU of corned beef sandwich = 1.6; MU of steak sandwich = 1 d. MU of corned beef sandwich = 1; MU of steak sandwich = 5
When goods do not have a price, which of the following primarily ensures that the good is produced?
a. buyers b. sellers c. government d. the market