One possible benefit from inflation is:
A. inflation causes restaurants to update their menus more often.
B. inflation reduces distortions to relative prices.
C. if nominal wages are fixed, inflation decreases real wages.
D. if nominal wages are fixed, inflation increases real wages.
Answer: C. if nominal wages are fixed, inflation decreases real wages.
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"Market power" refers to a firm's ability to:
A. influence the price its competitors charge. B. undercut its competitors' prices. C. raise its price without losing all of its sales. D. force consumers to buy high-priced products.
In a supply-demand diagram, the law of supply is illustrated by
a. shifting the supply curve to the right as suppliers expand production and to the left as they contract production. b. drawing the supply curve so that it slopes upward. c. showing how the equilibrium point changes as the supply curve shifts. d. drawing a vertical line at the quantity that producers choose to supply.
According to the World Bank, in 2006, China's GDP was approximately $2.7 trillion (or $2,700 billion). That same year, India's GDP was approximately $906.3 billion
With which of the following populations would China's standard of living have been considered higher than India's that year? A) China's population = 500 million; India's population = 125 million B) China's population = 8.3 billion; India's population = 1.1 billion C) China's population = 1.3 billion; India's population = 1.1 billion D) China's population = 3.5 billion; India's population = 1.1 billion
The condition that requires MRTS for each input pair to equal the ratio of their marginal costs is known as ________ efficiency, and the condition that requires MRS for each output pair to equal their output price ratio is known as ________
efficiency. A) economic, market B) micro, macro C) cost, revenue D) technical, output