Annual inflation equal to 1,000% means that prices are rising by
A. 100 times in a year.
B. 500 times in a year.
C. 1,000 times in a year.
D. 10 times in a year.
Answer: D
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Which one of the following industries could be classified as an oligopoly?
A) Tobacco production B) Retailing C Farming D) Fast food restaurants
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. If 95 units are produced, the average total cost is
A) $6.31. B) $17.45. C) $26.32. D) $32.63.
For the monopolistic competitor, which of the following is INCORRECT?
A) Because the firm is not a perfect competitor, its demand curve slopes downward. B) The marginal revenue curve is downward sloping and lies below the demand curve. C) The profit-maximizing rate of output arises at the point at which the marginal cost curve intersects the marginal revenue curve. D) If the firm in a monopolistically competitive industry were making economic losses, new firms will enter the industry.
A change in income will
a. affect the demand for candy through the income effect of a price change b. affect the quantity demanded of candy through the income effect of a price change c. shift the demand curve for candy d. have no effect on the demand for candy, because income is assumed constant along a demand curve e. affect quantity demanded only if candy is a normal good