A general increase in the price level is called:
A. hyperinflation.
B. deflation.
C. inflation
D. devaluation.
Ans: C. inflation
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In 2009, global investors began to regain confidence in the financial system and reversed the flight to safety that had taken place during the depths of the financial crisis
Make use of a graph of the market for corporate bonds to show the impact on corporate bonds prices and yields.
Predictions of stock prices by stock market analysts
A. usually improve on simple extrapolation of past trends. B. are good both in the short term and in the long term. C. are poor since Wall Street does not pay enough to attract the best analysts. D. are poor because of randomness.
A provision that permits raising tariffs if domestic producers are suffering under an existing tariff is known as
a. a trading bloc. b. exchange control. c. anti dumping. d. an escape clause.
Suppose the DeBeers company exercises monopoly power in the distribution of diamonds. This year, the company earns economic profits and maximizes profit. This implies that the price of diamonds per carat will
a. exceed the marginal cost of diamonds, but be equal to the average cost of diamonds. b. be equal to the marginal cost of diamonds. c. exceed both the marginal cost and average cost of diamonds. d. be equal to the average cost of diamonds.