Explain the economic costs of hyperinflation
What will be an ideal response?
The transaction system works less and less well. Price signals become less and less useful. Swings in the inflation rate become larger.
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Which one of the following statements is true?
a. Resources flow from the government to households. b. Resources flow from firms to households. c. Taxes flow from firms to the government. d. Resource payments flow from firms to households e. Imports flow from firms to foreign economies.
Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience
a. True b. False Indicate whether the statement is true or false
The Fab Five, a cartel of five firms, sells a homogenous product. The Oct-Pool cartel is composed of eight firms that can differentiate their products. In the given scenario, which of the following statements is true?
a. The firms of both cartels are likely to cheat on their cartel agreements. b. The firms of both cartels are unlikely to cheat on their cartel agreements. c. The Fab Five cartel firms are likely to cheat on their cartel agreement, while the Oct-Pool cartel firms are unlikely to cheat on their cartel agreement. d. The Oct-Pool cartel firms are likely to cheat on their cartel agreement, while the Fab Five cartel firms are unlikely to cheat on their cartel agreement.
When an employer pays the cost of educating a worker, it is likely that the employer
a. is demonstrating altruistic motives. b. is pursuing some objective other than profit-maximization. c. hopes to recapture his investment in the form of increased labor productivity. d. receives reimbursement from the government for the cost of the education.