The resource cost of inflation refers to
a. the opportunity cost of the resources spent coping with inflation
b. the redistribution of resources due to inflation
c. the lost purchasing power due to inflation
d. the lost real income due to inflation
e. the resources lost due to asking for higher nominal wage increase
A
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S1 could occur when
A) the U.S. interest rate rises. B) foreign interest rates rise. C) the expected future exchange rate falls. D) the current exchange rate rises.
One way to get a government contractor to consider life-cycle costs is to _____
a. use a cost plus incentive fee contract b. use a cost plus fixed fee contract c. use a fixed fee plus contract d. also write a maintenance contract with the contractor
A sales tax is an example of:
A. a specific tax. B. an ad valorem tax. C. a lump sum tax. D. an income tax.
Which of the following is correct?
a) Sometimes recessions are close together. b) Spending, income, and production do not fluctuate closely with real GDP. c) Recessions have never occurred very close together. d) Economic fluctuations are easily predicted by competent economists.