How is inflation typically measured? What are the different types of inflation? Why is it important to know which type of inflation we may be experiencing?
Inflation is typically measured by the CPI. The two types of inflation are demand-pull and cost-push. Demand-pull inflation is characterized by "too many dollars chasing too few goods and service." Demand-pull inflation is caused by total spending increasing faster than real GDP. Cost-push inflation is caused by anything that increases costs of production. Knowing which type of inflation we may be suffering from is important because each type of inflation requires a different policy prescription to combat.
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"Taylorism" has been described as
a. dehumanizing. b. the exploitation of labor. c. using science to increase production. d. All of the above are correct. e. Only b and c are correct.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 30 cars B. 10,000 pounds of cheese and 30 cars C. 5,000 pounds of cheese and 20 cars D. 10,000 pounds of cheese
Exhibit 7-11 A firm's cost and marginal revenue curves
?
In Exhibit 7-11, the profit-maximizing output level at the price of $8 is:
A. 0. B. 7. C. 8. D. 10.
Suppose Honda purchases a car factory in the United States. This purchase is entered into which of the balance of payments accounts?
A) business purchases account B) current account C) capital and financial account D) trade account E) official settlements account