While a trade-off between inflation and unemployment may exist when people expect no inflation, when they realize inflation is occurring, what happens?
a. The trade-off increases.
b. The trade-off decreases.
c. The trade-off disappears.
d. The trade-off shifts.
c. The trade-off disappears.
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The Sudsy Soda Company will not sell its soft drinks to a restaurant unless that business also buys paper cups from Sudsy. This requirement is an example of
A) product versioning. B) tie-in sales. C) price differentiation. D) complementary pricing.
To the corporation, bonds are riskier than stocks because
A. interest rates fluctuate. B. bond interest requires that firms make a fixed payment. C. investors prefer stocks to bonds. D. speculators manipulate bonds more than stocks.
Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels. b. price of coffee is too high relative to bagels. c. consumer should consume less coffee and more bagels. d. consumer is in equilibrium.
Matteo prepares dinner for his family on Tuesdays and Fridays. Which of the following categories excluded from the GDP does this example belong to?
a. underground economy b. nonmarket transactions c. leisure d. externalities