What are the primary causes of hyperinflations? Explain
What will be an ideal response?
A hyperinflation simply means a very high inflation. For one to occur, money growth must also be very high. Money growth is usually very high when the government is using debt monetization to finance a large and growing budget deficit.
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Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements about opportunity cost is CORRECT?
A) The opportunity cost of a ton of pecans is 2 tons of pears per ton of pecans for Missouri and 1/4 ton of pears per ton of pecans for Washington. B) The opportunity cost of a ton of pears is 2 tons of pecans per ton of pears for Missouri and 1/4 ton of pecans per ton of pears for Washington. C) The opportunity cost of a ton of pecans is 1/2 ton of pears per ton of pecans for Missouri and 4 tons of pears per ton of pecans for Washington. D) Both answers B and C are correct.
A comparative advantage is when a good can be produced at a(n) ________ cost in terms of other goods.
a. lower b. higher c. equal d. comparative
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. From this chart we can conclude:
A. Country I has the most unequal income distribution. B. Country III has a more equal income distribution than Country II. C. Country II has the most unequal income distribution. D. Country II has the most equal income distribution.
Suppose we have a two-person world with only Shaq and his friend, LeBron. Suppose that Shaq can move 40 boxes in an hour or could bake 20 cookies in an hour. Suppose that LeBron could move 20 boxes in an hour or bake 5 cookies in an hour. Is it to their advantage to trade?
What will be an ideal response?