Inflation targeting is one policy that attempts to deal with the problem of:
a. dollarization.
b. time inconsistency.
c. the tradeoff between inflation and unemployment.
d. the liquidity trap.
e. none of the above.
B
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The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the:
A) location hypothesis. B) geography hypothesis. C) culture hypothesis. D) institutions hypothesis.
Based on the graph showing an increase in the growth of the money supply, real wages initially fall because the increase in inflation rate is ______.
a. too small
b. too slow
c. expected
d. unanticipated
If demand curve D2 represents a monopolistic competitor, then its demand would be __________ elastic than D1 but __________ elastic than D3.
A. less; more
B. more; less
C. less; less
D. more; more
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 18.3. Mia's opportunity cost of producing one hair pin is:
A. 1/3 of a bandana. B. 2.5 bandanas. C. 3 bandanas. D. 10 bandanas.