The "true" costs of inflation to an economy include all of the following except:
A. shoe-leather costs.
B. higher relative prices.
C. unexpected redistribution of wealth.
D. noise in the price system.
Answer: B
You might also like to view...
For which of the following is the law of one price least likely to hold?
A) Haircuts B) Gold C) US Treasury Bonds D) Petroleum
By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, the inflation rate exceeded 10%. By the end of 1986 the inflation rate had been brought down to 1.9%. Which of the following is true about the Volcker Disinflation?
A) lower inflation resulted from a tightening of monetary policy B) by raising the federal funds rate to over 20%, the Federal Reserve stimulated the economy resulting in lower levels of both inflation and the unemployment rate by the early 1980s C) the unemployment rate was brought down by 1982 but it took longer to reach lower inflation rates D) all of the above E) none of the above
In the employer-worker relationship, the employer is regarded as the "principal" and the worker is regarded as the "agent."
a. True b. False Indicate whether the statement is true or false
In perfect competition as well as in monopolistic competition,
a. marginal revenue is equal to price for each firm. b. profit is positive in a long-run equilibrium for each firm. c. entry and exit by firms are restricted. d. there are many firms in a single market.