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

Economics

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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

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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

Economics

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

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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.

Economics