Which of the following is the best measure of inflation in an economy?
(a) Consumer price index.
(b) Unemployment rate.
(c) Gross domestic product.
(d) Quarterly National Household survey.
Answer: (a) Consumer price index.
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If a dominant firm is charged with refusal to deal under antitrust law, it is being charged because
A) the firm will not set its price at the regulated rate. B) it is refusing to sell a key input to downstream rivals, thereby reducing or destroying competition. C) it is refusing to cooperate with antitrust authorities, such as the Department of Justice. D) it will sell its products only to people who agree to buy only from it and not from rival firms.
A tax on an imported good is called:
a. an export. b. dumping. c. a quota. d. a tariff. e. free trade.
Keynesians reject the influence of monetary policy on the economy. One argument supporting this Keynesian view is that the:
A. money demand curve is horizontal at any interest rate. B. aggregate demand curve is nearly flat. C. investment demand curve is nearly vertical. D. money demand curve is vertical.
If each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be:
A. regressive. B. progressive. C. disproportionate. D. proportional.