When a price index moves from 105 to 108, the rate of inflation is 3 percent
a. True
b. False
Indicate whether the statement is true or false
False
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Inequality is often the result of higher levels of work and productivity
a. True b. False
According to _______________, if you suddenly inherited a large sum of money, you would spend only a small part of your inheritance right away.
A. the paradox of thrift B. the permanent income hypothesis C. Thorstein Veblen's Theory of the Leisure Class D. the theory of the multiplier
Suppose the demand for a product is lnQxd = 12 ? 3 ln Px. Then product x is:
A. unitary elastic. B. elastic. C. inelastic. D. It cannot be determined without more information.
Refer to Table 14-2. For each firm, is there a better outcome than the current situation in which each firm charges the low price and earns a profit of $7,000?
A) Yes, the firms can implicitly collude and agree to charge a higher price. B) Yes, each firm can implicitly agree to increase output and not to deviate from a low price. C) No, there is no incentive for each firm to consider any other strategy. D) No, any other strategy hurts consumers.