Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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Lipitor, a heart medication with few substitutes, should have an own-price elasticity of demand that is:
a. Relative elastic b. Relatively inelastic c. Perfectly inelastic d. Perfectly elastic
Domestic income has a ______ relationship with net export spending.
A. negative B. positive C. secondary D. constant
Which of the following would be better purchased from one who specializes in making them or producing them yourself?
a. A remote control b. spaghetti sauces c. strawberry jam d. chocolate chip cookies
You have noticed that your next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. You conclude that if Joe and Mary are efficient, then it must be the case that:
A. Mary has an absolute advantage in gardening. B. Joe experiences increasing opportunity costs when he gardens, but not when he walks the dog. C. Joe has a comparative advantage in walking the dog. D. Mary's opportunity cost of walking the dog is lower than Joe's.