If the annual inflation rate in an economy is negative, the purchasing power of a dollar:
A) will remain the same over time.
B) will increase over time.
C) will decrease over time.
D) can increase or decrease depending on the nominal interest rate.
B
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Tradeoffs involve an exchange of one thing for another because resources are limited and can be used in different ways
Indicate whether the statement is true or false
Because of the monopoly power that comes with being the only firm to produce a product, it is always more efficient to have multiple firms in an industry.
Answer the following statement true (T) or false (F)
Which of the following is NOT one of the major problems with expanding the EU?
A) Expansion has become a more difficult task because of the unwillingness of the eastern and central European countries to change. B) The programs that target EU expenditures could be stretched thin by the addition of countries with much lower incomes. C) The governance structure of the EU had to be changed to avoid becoming unwieldy and ineffective. D) The EU may be faced with an unstable eastern border with huge worker migratory flows if the transition economies fail. E) Most central and eastern European countries have large agricultural sectors and extending subsidies to these countries would entail an enormous flow of funds given the Common Agricultural Policy.
If average labor productivity increases while population and the number of employed workers remain constant, then output per person:
A. increases. B. decreases. C. may increase or decrease. D. remains constant.