In periods of high inflation,
a. people who hold money gain
b. the purchasing power of a dollar decreases
c. the purchasing power of a dollar increases
d. those who have loaned money to others gain
e. people become reluctant to buy goods and services
B
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Answer the following statements true (T) or false (F)
1. The relationship between the price of a book and the number of volumes purchased would be an example of microeconomics. 2. Some economic principles are based on physical phenomena. 3. If I stand up at a football game, I can see better. But if we all stand up, we block each other’s view. This is an example of the fallacy of composition. 4. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants.
If hiring one more worker causes the average product of labor to fall, then:
A. the marginal product of labor is less than the average product of labor. B. the marginal product of labor is equal to the average product of labor. C. the marginal product of labor is greater than the average product of labor. D. the marginal product of labor is negative.
The Environmental Protection Agency (EPA) cannot reach a target level of pollution through the use of pollution permits
a. True b. False Indicate whether the statement is true or false
If this is an open economy, the price of a car will be ________.
A. $8,000/car B. $10,000/car C. $14,000/car D. $6,000/car