Cost-push inflation is most likely to occur during a period of
a. falling input costs
b. falling unemployment
c. rising input costs
d. military expansion
e. military contraction
C
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Marginal cost can be defined as the change in
A. cost resulting from one less unit of production. B. benefit resulting from one more unit of production. C. benefit resulting from one less unit of production. D. cost resulting from one more unit of production.
Commercial banks do NOT
A) buy U.S. government Treasury bills. B) accept deposits from their customers. C) make loans to creditworthy individuals and businesses. D) determine what assets are money.
Graphically, we can think of the marginal product of a factor as the:
A. additional inputs associated with producing one more unit of output. B. slope of the total production curve, when output is plotted against the quantity of the input that is used. C. slope of the total cost curve, when output is plotted against the costs of the quantity of the inputs used. D. additional cost associated with producing one more unit of output.
The quantity theory of money states that if the money supply doubles and output is constant, prices will:
A. fall by half. B. remain the same. C. double. D. fall only if velocity rises.