Why is inflation unpopular?
a. It makes financial planning more difficult.
b. It leads to shortages in the economy.
c. It increases interest on loans.
d. It leaves too much time for production.
a
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Congested non-toll roads is an example of a _____
a. merit good b. club good c. common resource d. nonrenewable resource
How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government to finance a government program?
a. one dollar b. less than one dollar because the administration of and compliance with the tax laws creates jobs for people c. more than a dollar because collection of the taxes requires resources that would otherwise be available for private sector production d. more than a dollar because of the excess burden resulting from the elimination of productive exchanges by the taxes e. Both c and d are correct.
The figure below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points, respectively. S2 and C2 are the final production and consumption points, respectively. Which of the following is illustrated by this figure?
A. A small country experiencing a balanced growth B. A large country experiencing growth biased toward wheat production C. A large country experiencing a balanced growth D. A small country experiencing growth biased toward cloth production
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.