Inflation is
A. A situation in which purchasing power increases.
B. A rise in the price of every good but not any service.
C. An increase in the average level of prices of goods and services.
D. An increase in relative prices of all goods and services.
Answer: C
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In a benefit-cost analysis, the determination of feasibility
a. can be made by finding out if PVB/PVC is greater than unity b. is not critical and therefore is an optional step c. can be accomplished by finding out if PVNB is greater than zero d. all of the above e. (a) and (c) only
Average variable cost is at a minimum at the same amount of output at which
A) average product is at a maximum. B) marginal product is at a maximum. C) average product is at a minimum. D) marginal product is at a minimum.
Refer to Figure 15-10. The deadweight loss due to a monopoly is represented by the area
A) GEH. B) FGE. C) FQ1Q2E. D) FHE.
Why is the demand for labor referred to as a derived demand?