Redistribution of wealth is a microeconomic effect of inflation.
Answer the following statement true (T) or false (F)
True
Assuming that buyers' nominal incomes remain constant, redistribution of wealth occurs because buyers of goods will be worse off and sellers will be better off when prices rise.
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The reason that the prisoner's dilemma presents a dilemma is that:
A. each player has an incentive to play his or her dominated strategy, but when both choose the dominated strategy each player has a lower payoff than if they both had chosen the dominant strategy. B. the market cannot be in equilibrium because the players do not have dominant strategies. C. neither player has a comparative advantage, so neither can infer what the other player will choose. D. each player has an incentive to play his or her dominant strategy, but when both choose the dominant strategy each player has a lower payoff than if they both had chosen the dominated strategy.
The key variable in determining changes in a country's standard of living is the:
A. inflation rate. B. interest rate. C. long-run rate of economic growth. D. unemployment rate.
There are very few, if any, farms within the city limits of Chicago because
A) zoning laws have always prohibited them. B) the land under the city of Chicago is unfertile. C) Chicago is known for its butchers and freighters, not its farmers. D) the land is in extremely great demand for non-agricultural purposes.
Activists believe that
a. discretionary changes in macroeconomic policy can help smooth the ups and downs of the business cycle. b. balancing the federal budget is of primary importance to economic stability. c. the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment. d. the M1 money supply should be increased at a steady annual rate.