What does research suggest as to the relationship between the independence of the central bank and inflation? What is the rationale for this relationship?
What will be an ideal response?
Research indicates that the more independent a central bank is from the rest of the government, the lower the country's inflation rate will be. The reason is that an independent central bank is better able to resist political pressures to increase the money supply.
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Which of the following is not a reason to be cautious about using GDP as an indicator of development?
a. Developing countries may not have many statisticians. b. GDP includes the value of harmful products. c. Many goods and services are exchanged for others and are not recorded as having a specific value. d. Traditional methods of comparing countries' GDP data have numerous statistical weaknesses. e. All of the above are reasons for caution.
The Antitrust Division of the Department of Justice ________ file criminal suits and the Federal Trade Commission ________ file criminal suits.
A) cannot; can B) can; can C) can; cannot D) cannot; cannot
A price elasticity of demand of 0.67 implies
a. Demand is inelastic b. Demand is elastic c. Demand is unitary elastic d. Demand is perfectly elastic
If marginal cost is increasing, average total cost must be increasing
Indicate whether the statement is true or false