Inflation is defined as the sustained increase in relative prices
a. True
b. False
Indicate whether the statement is true or false
False
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Economic theory predicts that a profit maximizing car rental agency with some market power would set its prices in what way?
a. Charge the same for both weekday and weekend rentals. b. Charge more for weekend rentals and less for weekday rentals. c. Charge more for rentals during the week and less for weekend rentals.
If a monopolistically competitive firm raises its price, it
a. loses all of its customers (sales drop to zero) b. loses some, but not all, of its customers c. loses very few customers d. loses no customers at all e. gains customers (sales increase)
Which of the following is likely to be a benefit of foreign investment in a developing country?
a. Domestic firms are subjected to foreign competition b. Labor-intensive industries grow quickly c. New technology is adapted d. The natural rate of unemployment falls to zero e. The rate of inflation declines
The Board of Governors of the Federal Reserve is comprised of
A) seven persons, each appointed to a seven-year term. B) seven persons, each appointed to a fourteen-year term. C) fourteen persons, each appointed to a seven-year term. D) twelve persons, each appointed to a seven-year term. E) twelve persons, each appointed to a fourteen-year term.