Inflation is defined as
a. a period of rising productivity in the economy.
b. a period of rising income in the economy.
c. an increase in the overall level of output in the economy.
d. an increase in the overall level of prices in the economy.
d
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If a firm is producing a quantity along the upward sloping portion of its marginal cost curve at which marginal cost exceeds price and is earning positive economic profits, it should
a. continue to produce this quantity. b. decrease the quantity produced because doing so will increase profit. c. increase the quantity produced because profits are still positive. d. wait for the price to increase to its current marginal cost.
In the figure above, the economy is at point A when the price level falls to 100. Money wage rates and all other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion. B) $16.0 trillion. C) $16.5 trillion. D) None of the above answers is correct.
Which of the following goods is likely to have the most elastic demand curve?
a. Tobacco products. b. Gasoline. c. Medical care. d. Honda automobiles.
Insurance works best in situations where:
a. there is a high probability of a large loss. b. the level of probability and the size of the loss are irrelevant. c. there is a high probability of a small loss. d. there is a low probability of a small loss. e. there is a low probability of a large loss.