inflation caused by an increase in the per-unit production costs at each level of total spending
What will be an ideal response?
cost-push inflation
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The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. There is no external benefit nor external cost. The demand curve for chocolate is the same as the
A) marginal social cost curve of chocolate. B) marginal social benefit curve of chocolate. C) opportunity cost curve of chocolate. D) marginal social benefit curve minus the marginal social cost curve of chocolate.
If firms are price setters, a small decline in the demand for their outputs will cause them to
A) reduce price and reduce the level of output produced. B) reduce output in the short run, but reduce price in the long run. C) reduce price in the short run, but reduce output only in the long run. D) increase price in the short run to offset the effect on profits of a decline in output.
There is resistance to exchange rate fluctuations because changes in the value of a currency are likely to cause all of the following except
A. The return to a worldwide gold standard. B. Uncertainty for people who invest in world markets. C. A change in the price of imports. D. A change in the price of exports.
Suppose a market is currently at equilibrium. A leftward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.