Externalities
A. Are the costs or benefits of market activities that "spill over" onto third parties.
B. Occur because demand is hidden.
C. Occur because of government failure.
D. Occur because of selfish consumers.
Answer: A
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The cost of inflation to society includes I. The opportunity costs of resources used by people to protect themselves against inflation II. The costs associated with recalculating prices
A) I only B) II only C) Both I and II D) Neither I nor II
According to the kinked demand curve model, an oligopolist may face
a. more elastic demand than a monopolistic competitor. b. less elastic demand than a monopolistic competitor. c. more elastic demand if she raises her price than if she lowers her price. d. less elastic demand if she raises her price than if she lowers her price.
The price survey of the goods contained in the CPI basket is conducted
What will be an ideal response?
inflation caused by an increase in the per-unit production costs at each level of total spending
What will be an ideal response?