Some economists argue that since inflation
a. raises the real value of fixed nominal wages, a little inflation may make it easier for labor markets to adjust.
b. raises the real value of fixed nominal wages, a little inflation may make it harder for labor markets to adjust.
c. reduces the real value of fixed nominal wages, a little inflation may make it easier for labor markets to adjust.
d. reduces the real value of fixed nominal wages, a little inflation may make it harder for labor markets to adjust.
c
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A rent ceiling below the equilibrium rent will create
A) a more efficient allocation of housing. B) a larger number of apartments rented. C) no change in the number of apartments rented. D) increased search time and black markets.
China has developed a comparative advantage in the production of clothing. The source of this comparative advantage is
A) investment in capital used to produce clothing. B) a large supply of natural resources. C) a large supply of unskilled workers and relatively little capital. D) superior process technology.
In a barter system individuals
A) find it impossible to specialize. B) must be entirely self-sufficient. C) find it difficult to specialize, but may be able to do so. D) will almost invariably specialize.
Logrolling is when a politician ______.
a. votes for an issue in exchange for someone else’s vote on another issue b. misleadingly portrays opponent as more radical than they actually are c. puts aside the public good under pressure from special interest groups d. claims to support an issue but votes against it