A rise in the price level because of an increase in the money wage rate
A. definitely triggers a cost-push inflation
B. definitely triggers a demand-pull inflation
C. might trigger a cost-push inflation
D. might trigger a demand-pull inflation.
Answer: C. might trigger a cost-push inflation
You might also like to view...
The break-even point on the consumption function represents the point where
A) consumption is zero. B) income equals consumption plus spending. C) consumption equals spending. D) consumption equals income.
Scarcity requires that we
A) produce efficiently. B) learn to limit our wants. C) have the most rapid economic growth possible. D) have unlimited resources. E) make choices about what goods and services to produce.
Define "reservation values." If a buyer of a product has a reservation value of $10, the seller of the product has a reservation value of $3, and the equilibrium price of the product is determined at $5,
calculate the consumer surplus and the producer surplus.
Which of the following can a firm use to defend a successful product's brand name?
A) The firm can apply for a trademark to ban other firms from using the product's name. B) The firm can increase the amount it spends on advertising for the product. C) The firm can obtain a patent on the brand name. D) The firm can attempt to copyright the brand name.