Suppose there are only two goods: bread and wine. In Mexico, the absolute price of wine is 30 pesos per bottle. If the relative price of wine in terms of bread is 5 loaves per bottle, then the absolute price of bread is
a. 5 pesos per loaf.
b. 6 pesos per loaf.
c. 25 pesos per loaf.
d. 150 pesos per loaf.
b. 6 pesos per loaf.
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In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A) market system B) socialist system C) centrally planned system D) command system
Economic analysis requires us to combine:
A. unlimited resources with limited wants. B. theory with observations. C. developed and developing nations. D. republicans and democrats.
If the data show that periods of high economic growth rate accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations
a. True b. False Indicate whether the statement is true or false
Katarina puts money into an account. One year later she sees that she has 6 percent more dollars and that her money will buy 4 percent more goods
a. The nominal interest rate was 10 percent and the inflation rate was 6 percent. b. The nominal interest rate was 6 percent and the inflation rate was 2 percent. c. The nominal interest rate was 4 percent and the inflation rate was 2 percent. d. The nominal interest rate was 10 percent and the inflation rate was 4 percent.