Inflation is defined as:
a) An increase in the price of expensive items, such as cars.
b) An increase in relative prices.
c) An increase in the average level of prices.
d) The level of prices at full-employment.
Answer: c) An increase in the average level of prices.
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All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT
A) they are thinly traded which makes it difficult to determine their value. B) firms do not set aside reserves against potential losses. C) they involve substantial counterparty risk. D) they were not flexible enough due to lack of standardization.
Dana is an art historian who needs to travel to Italy to do research. Art historians usually don't have a lot of money, and therefore are very sensitive to price changes. Dana's funding agency pays her a fixed amount to travel. At current exchange rates, Dana can stay in Italy for 35 days. If the exchange rate improves by 10 percent, she can stay for 40 days. What is Dana's price elasticity of
demand for days spent in Italy? a. It is approximately equal to 2.3. b. It is approximately equal to 1.6. c. It is approximately equal to 1.4. d. It is approximately equal to 0.4. e. It is approximately equal to 0.1.
Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment
a. True b. False Indicate whether the statement is true or false
If the positive effect of a greater quantity demanded more than offsets the negative effect of a lower price, then total revenue rises
Indicate whether the statement is true or false