Unlike demand-pull inflation, cost-push inflation:
A. drives up the price level.
B. increases nominal income.
C. increases real income.
D. is self-limiting.
Answer: D
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Which of the following metaphors best expresses the scientific nature of economic theory?
A) like a wool sweater, economic theory warms the heart of the economist. B) like a pair of eyeglasses, economic theory allows one to more clearly see and discriminate among the countless facts he or she faces. C) like a gun, economic theory shoots holes through every other rival theory. D) like a bank, economic theory is concerned with only one thing: the accumulation of money.
If Barbecue Bob has a right to own and use his backyard barbecue, then Barbecue Bob also enjoys
A) a right to pollute. B) a right to steal. C) a right to free charcoal. D) a right to clean air.
With debt financing
A) moral hazard problems are eliminated. B) moral hazard problems are reduced but not eliminated. C) adverse selection problems are eliminated. D) firms reduce the risk that they will become bankrupt during a recession.
Since 1970s, the share of income going to the poorest 20 percent of U.S. households has decreased, while the share of income going to the richest 20 percent of U.S. households has increased
Indicate whether the statement is true or false