The microeconomic view of the expectations of inflation are based on the assumption that
A. individuals are rational, forward-looking people.
B. people always assume that inflation will be zero.
C. individuals will merely guess at what the inflation rate will be.
D. individuals are highly sophisticated in their economic thinking.
Answer: A
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The following table shows values of annual real GDP per capita over time. Use it to answer the next question.1810$1,5001860$2,1001910$3,9001960$18,0002010$43,600What was the rate of growth in real GDP per capita between 1810 and 2010?
A. 2,807% B. 2,907% C. $43,600 D. $42,100
If the price elasticity of demand for apples is greater than 1, an increase in apple prices will
A) raise total revenue. B) lower total revenue. C) not affect total revenue. D) either raise or lower total revenue, but it is impossible to determine which.
Collective bargaining in the United States typically involves negotiations between
A) the government and management over the minimum wage law. B) the management of a company and the leaders of the union over the wages and fringe benefits to be offered. C) an individual and her boss over the appropriate salary level. D) union and nonunion employees regarding work rules.
Colonists owned the vast majority of the tonnage shipped between
a. New England and the West Indies. b. England and the West Indies. c. The Middle colonies and England. d. The South and the West Indies.