A worker would be hurt least by inflation when the:
A. worker anticipates inflation and increases savings at the bank.
B. worker is protected by a cost-of-living adjustment clause in an employment contract.
C. price level increases but at a decreasing rate.
D. worker is protected by fixed annual increases in wages and benefits in an employment contract.
Answer: B
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Whenever there is adverse selection without signaling or screening, there will be a missing market.
Answer the following statement true (T) or false (F)
How is money market equilibrium determined in the short run?
What will be an ideal response?
A production possibilities curve shows the:
a. dollar costs of producing two different goods. b. amounts of labor and capital needed to produce one good. c. various combinations of goods that can be produced. d. prices of different goods that are produced in an economy. e. inefficient use of available resources and technology.
A firm in a price-taker market
a. must take the price that is determined in the market. b. must reduce its price if it wants to sell a larger quantity. c. must be large relative to the total market. d. can exert a major influence on the market price.