Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year, your purchase of the shoes would:
a. make you an inflation winner as you saved $5 on the shoes.
b. make you an inflation loser as you paid $5 more than you should have for the shoes.
c. not be affected at all by the inflation rate.
d. be taxed according to COLA adjustments.
e. make you an inflation loser because of bracket creep.
a
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One of the requirements for a monopoly is that
A) products are high priced. B) there are several close substitutes for the product. C) there is a product with no close substitutes. D) the product cannot be produced by small firms. E) there is no barrier to entry.
A guild is
A) an organization of producers that limits the amount of a good produced. B) a nation that is a free-market benchmark. C) a group of independent producers competing with each other. D) a group of nations who agree not to compete with each other.
Which of the following is TRUE?
A) Child labor is most common in urban areas. B) Child labor is most common in the textile industry. C) Child labor is most common in production aimed at export markets. D) If child labor were stopped, families would have greater economic success. E) Agriculture is the main industry using child labor.
When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A) marginal cost. B) external cost. C) average total cost. D) public cost.