What are the 2 basic lessons learned about the redistributive effects of price changes?
What will be an ideal response?
1) not all prices rise at the same rate during an inflation
2) not everyone suffers equally from inflation
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Tobin's q is the ratio of the
A) dividend payments of a firm to the current stock price of the firm. B) market value of a firm to the replacement cost of its capital. C) current stock price of a firm to the number of outstanding shares of stock in the firm. D) current stock price of a firm to the total earnings of the firm.
Comparative advantage implies that you
A) can produce more units of a good or service than another. B) can produce a good or service at a lower opportunity cost. C) can produce goods with more capital resources. D) can produce goods with more human resources.
All other things constant, goods will have more __________ demand if their price uses up a __________ proportion of a consumer's budget
a. price-elastic; greater b. unit-elastic; smaller c. price-elastic; smaller d. price-inelastic; greater e. stable; greater
Which of the following will be most likely to contribute to the growth of a less-developed country
What will be an ideal response?