Inflation:
a) Always reduces the cost of living
b) Always reduces the standard of living
c) Reduces the price of products
d) Reduces the purchasing power of a pound
Answer: d) Reduces the purchasing power of a pound
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When the natural unemployment rate ________, the short-run Phillips curve shifts ________ and the long-run Phillips curve shifts ________
A) increases; rightward; rightward B) increases; rightward; leftward C) decreases; rightward; rightward D) decreases; leftward; rightward E) increases; leftward; leftward
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. What is the area of deadweight loss when Light-U-Up produces the unregulated, profit-maximizing level of output?
A) abd B) acg C) deg D) There is no deadweight loss.
According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king
Indicate whether the statement is true or false
Common property ownership most likely leads to
A) an efficient allocation of resources. B) production at a rate at which price is less than social cost. C) a decrease of externalities. D) an increase in pollution.