Inflation makes it difficult to distinguish relative price changes from changes in the general level of prices. Consequently, inflation ________ the efficiency of the market system.
A. decreases
B. increases
C. does not change
D. may either increase or decrease
Answer: A
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Third-degree price discrimination refers to situation in which:
A) a firm charges different prices for different blocks of output. B) a firm separates markets according to the price elasticity of demand. C) a firm is able to charge the maximum price consumers are willing to pay for each unit of output. D) a firm divides a market into thirds and charges each segment a different price.
The American Economic Association limiting its presidential vote to only one candidate is an example of agenda control
a. True b. False
Which of the following is true of the European Currency Unit?
a. It was used by the European nations as a medium of exchanging goods and services. b. It was an accounting entry that was transferred between two European nations. c. It was replaced by the euro in the early 1980s. d. It was denominated in the British pound. e. It was a primary international reserve asset of most of the nations across the world.
The most likely reason that oil prices spiked during 2007-2008 was because
a. suppliers drastically cut back on production b. speculators heavily invested in the futures market c. there was an increase in demand due to an increase in usage d. there was an increase in demand as buyers began to hoard oil for future use e. suppliers increased their production to match the increase in demand