The concept of inferior goods can be used to show that
A) lower prices signal poorer quality.
B) indifference curves can have positive slopes.
C) being able to consume more of all goods does not mean that a person will consume more of every good.
D) consumers will always buy more of all products if their incomes increase.
C
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Fiscal policy is likely to fail to correct stagflation in an economy because: a. it affects both aggregate demand and supply, although only aggregate supply needs to be changed
b. it affects both the aggregate demand and supply, although only aggregate demand needs to be changed. c. it affects aggregate demand only, although aggregate supply needs to changed. d. it affects aggregate supply only, although only aggregate demand needs to be changed. e. it affects either aggregate demand or aggregate supply, although both need to be changed simultaneously.
Money serves as a medium of exchange, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.
We can calculate how long a country will take to double its real GDP per capita using:
A. the GDP growth estimator. B. its GDP deflator. C. its average growth rate. D. the CPI indexation factor.
When the manager of a department store attaches price tags to his/her products, he/she is using money as a
A. unit of account. B. unit of transfer. C. store of value. D. medium of exchange.