The primary cause of inflation is
a. growth in the quantity of money.
b. variability in relative prices
c. inter-bank lending.
d. reduced velocity of money.
a
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Which of the following is an example of an external benefit?
A) a ton of coal burned in a power plant to produce electricity B) a car accident that crowds a major Los Angeles freeway C) the production of a slice of pizza D) the cleanup of a large lake E) the consumption of a can of Mountain Dew
If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________
A) decrease; decrease; decrease B) increase; decrease; decrease C) increase; decrease; increase D) increase; increase; decrease E) decrease; increase; increase
Firms should begin their pricing decisions by:
a. assessing total marginal cost of the product b. identifying the value drivers in each customer segment c. researching the market price of competitors d. none of the above
Employees with less experience tend to earn less than employees with more experience, because
A. the government requires that more-experienced employees be paid more than less-experienced employees. B. experience is a compensating differential. C. experience on the job increases an employee's human capital. D. it is only fair that a more-experienced employee be paid more than a less-experienced employee.