Which is a correct statement?
A. Demand-pull inflation will continue so long as there is excess total spending in the economy.
B. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation.
C. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation.
D. Cost-push inflation will continue because increased per-unit cost will lead to a reduced supply.
Answer: A
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According to Say's law,
A) desired expenditures cannot be compared with actual expenditures. B) desired expenditures are always less than actual expenditures. C) desired expenditures are always equal to actual expenditures. D) desired expenditures are always more than actual expenditures.
Medical malpractice law is designed to
a. encourage physicians to act as responsible agents for their patients b. punish those providers guilty of intentional misconduct c. provide an income for the insurance firms who sell malpractice insurance d. none of these choices
The discovery of new natural resources will cause
A) the economy to move closer to the production possibilities curve. B) the production possibilities curve to shift up and to the right. C) an upward movement along the curve. D) the curve to shift back and to the left.
If a firm is price differentiating, then it is
A. charging different prices based on quality. B. producing a homogeneous product. C. charging different prices based on advertising costs. D. charging different prices to different consumers based on differences in marginal costs.