Why is there a resource cost associated with inflation?
A. because the existence of inflation discourages people from placing their savings in interest-bearing accounts, where it is needed to fund capital investment
B. because most workers end up working fewer hours during periods of inflation
C. because consumers, workers, and firms devote resources to protecting themselves from the financial costs of inflation
D. because unemployment increases when there is inflation
Answer: C
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An increase in the price of a resource will cause a movement along the demand curve for that resource
a. True b. False
Which factor receives the profit from production?
a. land b. labor c. capital d. entrepreneurship
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.
A. have total revenues equal to B. have total costs equal to C. lose D. earn a profit of
How is the price of a financial asset, such as government bonds, related to the interest rate?
What will be an ideal response?