Unlike demand-pull inflation, cost-push inflation:
A. is self-limiting.
B. drives up the price level.
C. increases nominal income.
D. increases real income.
A. is self-limiting.
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The principle of diminishing marginal utility implies that the
A) marginal utility of a product is negative. B) total utility from a product is also diminishing as more units are consumed. C) rate of change of total utility is diminishing as more units are consumed. D) rate of change of marginal utility is very low as more units are consumed.
Refer to Figure 8.2. Holding other variables constant, an increase in income taxes will result in a
A) movement from point A to point B. B) movement from point B to point A. C) shift from curve S1 to curve S2. D) shift from curve S2 to curve S1.
All of the following are example of entry barriers, except
a. Government protection through patents or licensing requirements b. Strong brands c. Low capital requirements for entry d. Lower costs driven by economies of scale
The ________ interest rate equals the ________ interest rate minus ________.
What will be an ideal response?