Inflation can be defined as
A. an overall decline in average prices.
B. the situation that exists when exports exceed imports.
C. an overall increase in average prices.
D. an increase in most prices.
Answer: C
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What is the difference between foreign direct investment and foreign portfolio investment?
A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms, while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. B) Individuals engage in foreign portfolio investment, but only firms can engage in foreign direct investment. C) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have, but foreign portfolio investment does not expand that access. D) Foreign direct investment only takes place when governments make official purchases or foreign investments, while foreign portfolio investment takes place when firms, individuals, or the government purchase foreign investments.
According to the indifference principle, in the long run if being a teacher is more desirable than being a garbage collector,
a. teachers would be paid a relatively higher salary than garbage collectors b. teachers would be paid a relatively lower salary than garbage collectors c. teachers and garbage collectors would both be paid the same wages d. none of the above
A plant where you can't get a job unless you are a member of the union is a ________ shop; a plant where you can't keep your job after 30 days unless you join the union is a ________ shop.
Fill in the blank(s) with the appropriate word(s).
A good that has social costs that are equal to private costs has a price that is
A) too high. B) too low. C) just right. D) equal to marginal cost.