When "stagflation" occurs
A) the economy experiences higher inflation rates and lower unemployment rates at the same time.
B) the economy experiences lower inflation rates and higher unemployment rates at the same time.
C) the economy experiences lower inflation rates and lower unemployment rates at the same time.
D) the economy experiences higher inflation rates and higher unemployment rates at the same time.
Answer: D) the economy experiences higher inflation rates and higher unemployment rates at the same time.
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If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____
a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out
Average costs curves rise with production
a. Due to declining average fixed costs b. Due to rising average fixed costs c. Due to marginal costs being less than average costs d. Due to rising marginal costs
An example of a one-time expense for a shoe factory would be buying:
A. a sewing machine, and would be included in total cost. B. a sewing machine, and would be excluded from total cost. C. leather to make the shoes, and would be included in total cost. D. leather to make the shoes, and would be excluded from total cost.
Consider the production possibilities frontier displayed in the figure shown. If this society chooses to produce 200 bushels of apples it can produce no more than:
A. 20 watermelons.
B. 15 watermelons.
C. 10 watermelons.
D. 5 watermelons.