Inflation caused by a rise in the prices of inputs is referred to as ________.
A. hyperinflation
B. unexpected inflation
C. demand-pull inflation
D. cost-push inflation
Answer: D
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If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
A. doubles. B. decreases C. increases, but by less than 100 percent. D. remains constant.
Which of the following will cause the investment function to shift upward?
a. A decrease in government subsidies to businesses b. An increase in business profits c. A decline in capacity utilization d. Expectations of higher business taxes e. An increase in the market rate of interest
Voluntary trade promotes economic progress because it
A) moves goods, services and resources from people who value them more to individuals who value them less. B) benefits buyers at the expense of sellers. C) encourages individuals to become self-sufficient. D) makes larger outputs possible as a result of specialization.
Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3:
A. the demand for the firm's product is decreasing. B. the firm's average cost of production is increasing. C. the firm's marginal revenue curve also shifts to the left. D. All of these