When inflation causes relative-price variability,
a. consumer decisions are distorted and the ability of markets to efficiently allocate factors of production is impaired.
b. consumer decisions are distorted, but markets are still able to efficiently allocate factors of production.
c. consumer decisions are not distorted, but the ability of markets to efficiently allocate factors of production is impaired.
d. consumer decisions are not distorted and markets are still able to efficiently allocate factors of production.
a
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One of the shortcomings of the Solow growth model is that in it the rate of technological change is
A) assumed to be zero. B) assumed to be equal to the population growth rate. C) left unexplained. D) zero unless the saving rate exceeds the depreciation rate.
Most goods are:
A. exclusive. B. public goods. C. rival in consumption. D. nonrival in consumption.
The exchange rate is the:
a. value of money. b. quantity of dollars, yen, etc. that are traded. c. amount of a foreign currency that is brought back to the United States by tourists. d. number of units of your currency that it takes to buy one unit of a foreign currency. e. number of units of a foreign currency that can be bought with one unit of your own currency.
Which of the following statements is true?
a.Perfect price discrimination can never lead to the most socially desirable level of output since it involves monopoly power. b.Even though the pharmaceutical industry cannot stop other countries from selling lower price drugs to U.S. residents, the industry's efforts to price-discriminate are profitable. c. Prestigious theaters that can sell tickets for operas for $500 should never sell tickets at $20 prices. d. You should never tip a host in a restaurant in order to avoid a long wait.