Inflation is undesirable because it:
A. arbitrarily redistributes real income and wealth.
B. invariably leads to hyperinflation.
C. usually is accompanied by declining real GDP.
D. reduces everyone's standard of living.
A. arbitrarily redistributes real income and wealth.
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Unemployment insurance benefits are uniform throughout the U.S
Indicate whether the statement is true or false
If an economist claims there are substitutes for fossil fuels, she is really saying
A) fossil fuels don't have to be economized. B) fossil fuels aren't scarce goods. C) fossil fuels aren't important. D) fossil fuels are used, and maintained, only at a cost. E) economists don't care for fossil fuels.
Under the gold standard
A) a perpetual surplus is possible. B) a perpetual deficit is possible. C) a perpetual surplus is impossible, but a perpetual deficit is possible. D) a perpetual deficit is impossible, but a perpetual surplus is possible. E) a perpetual surplus is impossible.
Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $100,000 . Chelsea currently has $150,000 in the bank earning 3 percent interest per year. Suppose Chelsea purchases the factory using her own money. What is Chelsea's annual implicit opportunity cost of purchasing the factory?
a. $2,000 b. $3,000 c. $4,500 d. $5,000