During a period of unanticipated inflation,
A. Debtors and creditors are both better off because of lower real interest rates.
B. Individuals on fixed incomes are better off.
C. All individuals are worse off because of the level of uncertainty.
D. Debtors are better off and creditors are worse off.
Answer: D
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The Seattle Mariners baseball team has a monopoly on major league baseball in the Northwest. If the Mariners could be purchased by anyone with enough money, we could argue that this purchase is fair according to the
A) fair rules test. B) fair results test. C) fair price test. D) fair output test. E) allocative fairness test.
Which of the following is collected only by local and state governments?
A) Excise tax B) Personal income tax C) Toll taxes D) Payroll tax
Under the IMF fixed exchange rate system, a nation running a balance of payments surplus would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency
A) supply of; buy B) supply of; sell C) demand for; buy D) demand for; sell
Using real GDP to compare the level of economic well-being in two countries may be misleading because the value of ________ contributes to economic well-being, but is excluded from real GDP.
A. services B. formal education C. leisure D. capital goods