The spread between price and marginal cost of an exhaustible resource must grow by the rate of interest so that
A) resource owners earn a profit.
B) resource owners are willing to sell some of the resource in the future.
C) the price of the resource remains constant in real terms.
D) the marginal cost of extracting the resource declines.
B
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An economy experiences real growth over time with stable aggregate demand. This would likely result in
A) decreasing prices. B) increased unemployment. C) increasing prices. D) secular inflation.
The direct cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________
A) printing of too much money by the central bank B) government expenditures greatly above revenues C) outlawing of price increases on many commodities D) allowing the use of foreign currencies E) the issuance of a $100 billion bank note
Core competency occurs when: a. a business focuses on a wide range of products rather than a few products. b. a business focuses on one or few products rather than a wide range of products. c. a business sells products at a high price
d. a business is merged with another profit-making business.
If Y and V are constant and M doubles, the quantity equation implies that the price level
a. more than doubles. b. changes but less than doubles. c. doubles. d. does not change