Low expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; low
B. large; low
C. large; high
D. small; high
Answer: A
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Xenonia and Baltonia are two neighboring countries. Xenonia can either produce 300 pounds of rice or 100 bushels of corn in a year while Baltonia can either produce 500 pounds of rice or 200 bushels of corn
Can mutually profitable trade take place between the two countries? Explain your answer.
The instructor of your wine tasting class trips and falls while discussing the merits of spitting out the wine samples after you have tasted them instead of swallowing them, so as not to get inebriated during the class
You are afraid that he might have hurt himself in the fall, but since no one else in the class is rushing up to help him, you mistakenly believe that the rest of the class thinks the instructor is trying to prove a point about drinking too much in the class. You therefore doubt your own judgement and decide to also not get up to help the instructor back to his feet. This is an example of A) diffusion of responsibility. B) pluralistic ignorance. C) mob mentality. D) passing the buck.
Both firm A and firm B emit 300 tons of pollution. Suppose both firm A and firm B have permits that allow each to emit 100 tons of pollution
If it costs $5,000 for firm A to eliminate 100 tons of pollution and it costs firm B $6,000 to eliminate 100 tons of pollution, then A) firm B will sell its permits to firm A for a price above $6,000. B) firm A will sell its permits to firm B for a price below $6,000. C) firm A will sell its permits to firm B for a price above $6,000. D) firm B will sell its permits to firm A for a price below $6,000.
Refer to Figure 5-7. The marginal cost of reducing pollution curve is the same curve as
A) the demand for pollution reduction curve. B) the value of pollution reduction curve. C) the negative externality curve. D) the supply of pollution reduction curve.