An overall rise in prices in the economy is called:
A. core inflation.
B. core deflation.
C. inflation.
D. deflation.
Answer: C
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Mel's utility of wealth is 130 units at $3,000, 160 units at $5,000, and 190 units at $9,000. Starting from zero wealth, he must choose between options A and B
Option A gives him $5,000 for sure. Option B gives him $3,000 with probability 0.4 or $9,000 with probability 0.6. Mel A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
What is meant by the expression, "There is too much money chasing too few goods"?
a. People spend too much time chasing after money. b. An expansion in the supply of money relative to the availability of goods and services is causing an increase in the general level of prices. c. The value of money will tend to decline when the supply of gold increases. d. People would be better off if the monetary authorities increased the supply of money more rapidly.
The direct exchange of goods and services for other goods and services without the use of money is
A. financial intermediaries. B. a store of value. C. barter. D. a standard of deferred payment.
Under the cartel, the individual firm's quantity is (assuming that it wants to cheat on its quota) 
Figure 42.2
A. Q1. B. Q2. C. Q3. D. Qb.