Which of the following is a danger of inflation?
a. Price changes can affect the people who sign long-term contracts.
b. Rapid price changes reduce uncertainty.
c. Anticipated inflation may be greater than unanticipated inflation.
d. High rates of inflation will reduce interest rates.
A
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Which of the following best illustrates the free rider problem?
A) For every purchase of a $100 season pass, you are entitled to free entry to an amusement park for the entire summer. B) If your neighbors redo the landscapes in their yards, it is likely that the value of your house will increase. C) Since no one owns rhinos and rhinos are valued for their horns, rhinos can be hunted to extinction. D) Homeowners in a small neighborhood decide that security lighting is good for the neighborhood. One homeowner installs the lighting and asks you to contribute toward the cost, but you choose not to contribute.
A futures contract is an example of:
A. a contract that is traded but is not a financial instrument. B. an instrument used solely by financial institutions. C. a derivative instrument. D. a high-risk security that will only have value if certain events occur.
Refer to the table above. The total cost per month is the highest if Apartment ________ is rented
A) 2 B) 3 C) 4 D) 5
The above figure shows the reaction functions for two pizza shops in a small isolated down. The Stackelberg leader will produce
A) 25 pizzas. B) 50 pizzas. C) 66.7 pizzas. D) 100 pizzas.