If inflation is highly volatile, money is:
A. less valuable because its unit of account function is reduced.
B. more valuable because its unit of account function is reduced.
C. more valuable because you need more of it.
D. less valuable because there is less of it.
Answer: A
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In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition. B) the outcome is always a monopoly equilibrium. C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits. D) a firm that enters the market first is protected from potential entrants by natural barriers.
In the U.S., the largest share of national income is earned in the form of
a. taxes on production. b. wages and salary. c. interest earned on capital. d. corporate profits.
A movement along today's production possibilities frontier that increases production of consumer goods and reduces production of capital goods would most likely lead to a faster rate of future economic growth
Indicate whether the statement is true or false
Credit card companies put a low "minimum required payment" on people's bills in the hope that people will send in low payments thereby allowing the card companies to earn more interest. The companies are trying to exploit the:
A. Framing effect B. Anchoring effect C. Confirmation bias D. Endowment effect