According to the text, the most serious cost of continued inflation in a democratic society is
A) its tendency to undermine social consensus and feed political conflict.
B) the eventual recession that must inevitably occur as a result of the inflation.
C) the open and disguised unemployment that accompanies it, especially among minorities and teenagers.
D) the slowdown in the rate of economic growth that it causes.
E) the steady rise in the cost of living that it entails.
A
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Suppose pollution, which generates a negative externality, exists in a market. If transactions costs are low and parties are willing to bargain, then, according to the Coase theorem,
A) an equitable solution can only be reached if property rights are assigned to the victims of pollution and not the polluters. B) an equitable solution can only be reached if property rights are assigned to the polluters, and not the victims of pollution. C) an efficient solution can be reached regardless of the initial assignment of property rights. D) government intervention is necessary to reach an efficient and equitable solution.
The country of Pimm exports $500 billion worth of goods and services and imports $400 billion worth of goods and services. Net interest income paid abroad is $50 billion and net transfers are $0. The current account balance is ________
A) $50 billion B) $100 billion C) $150 billion D) $975 billion
Successful advertising by a monopolist will
a. reduce the gap between the monopoly and competitive output. b. increase the gap between the monopoly and competitive output. c. cause the monopolist to overproduce. d. cause the monopolist to decrease output.
How is the architecture within firms usually designed?
What will be an ideal response?