Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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If autonomous consumption is equal to $80, then when income is zero, saving is
a. $0 b. –$20 c. –$80 d. $20 e. $80
Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets prices fell and quantities increased. The result suggests that these markets
a. were contestable. b. were monopolized. c. become more competitive due to oligopolistic rivalries. d. had no barriers to entry.
According to Adam Smith, what is the primary source of a nation's wealth?
a. The amount of gold and silver in the government's possession. b. A spirit of cooperation in which people share according to their means. c. Strong central planning authorities. d. The people's ability to produce products and trade in free markets.
Quantity Decision
What will be an ideal response?