The claim that inflation is necessary for development is based on the idea that
a. rapidly rising demand is necessary to spur productive activity
b. the problems brought on by inflation will attract foreign aid
c. the process of structural change naturally forces prices up in some sectors, while other sectors'prices do not fall
d. higher prices will force people to work harder
e. none of the above
C
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In the circular flow model,
A) the government has no direct interaction with either households or firms. B) the government is represented as a separate market. C) the government buys goods and services from firms. D) goods and services are sold by households and purchased by firms. E) factor markets are where goods rather than services are bought and sold.
According to the 1974 Constitution of the former Yugoslavia, nobody in Yugoslavia owns resources. Being a socialist country, the constitution claimed resources were owned by "society" as a whole
If the constitution were fully enforced, resources would tend to be A) used for the common good. B) used without greed and materialistic interests. C) free from the constraints of scarcity. D) underpriced.
The problem the agent faces when deciding which agent to hire is called
a. Adverse selection b. Moral hazard c. Both of the above d. None of the above
Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell
a. True b. False Indicate whether the statement is true or false