When the price of a key input increases suddenly, it causes:
A. the velocity of money to rise.
B. demand pull inflation.
C. cost push inflation.
D. the business cycle to become sporadic.
Answer: C
You might also like to view...
Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?
A) a fall in the price of shredded wheat B) an increase in the cost of machinery used to shred wheat C) perfect weather conditions that resulted in a large wheat crop D) a decrease in the number of shredded wheat producers
Distinguish between comparative advantage and absolute advantage
What will be an ideal response?
The First Theorem of Welfare Economics can be expressed as
A) the competitive equilibrium results only when no transactions costs exist. B) the competitive equilibrium does not involve reallocation of endowments. C) any efficient allocations can be achieved by competition. D) the competitive equilibrium is efficient.
Which of the following is not a characteristic of a public good?
a. It is scarce. b. It is not diminished in amount as additional people consume the product. c. Its benefits cannot be withheld from anyone. d. It is free. e. It yields widespread benefits.