If the price of a slice of pizza falls from $2 to $1.5, a pizza-loving consumer will
A. spend more on soft drinks and less on pizza.
B. see her purchasing power fall.
C. substitute more Chinese food for pizza.
D. see her purchasing power rise.
Answer: D
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During hyperinflations, people desire to hold less money and will go to the bank more frequently. This waste of resources due to the high rate of inflation is known as _____
Fill in the blank(s) with correct word
Why is the unemployment rate among teenage workers so much higher than other workers?
a. They have little education. b. They take unskilled jobs. c. They are the first laid off when the economy slows down. d. All of the above are reasons why the unemployment rate is so much higher among teenagers.
Assume that in the country of Salmon, the government tripled the money supply overnight. As a result of this action, the price of a loaf of bread increased from 1 bill to 100 bills. This is an example of
A. currency debasement. B. deflation. C. a change from commodity money to fiat money. D. a change in the legal tender.
Intermediate goods are
A. goods that are used up in the production of other goods in the same period that they were produced. B. either capital goods or inventories. C. capital goods, which are used up in the production of other goods but were produced in earlier periods. D. final goods that remain in inventories.