AnswersEconomics - PathwaysInflation and Stagflation

Inflation and Stagflation — Unit test Answers

15 verified answers
1
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When individuals are looking for jobs but are unable to find work, they are said to be .

Answer not available
2
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Why are utilities, such as electricity and water, examples of natural monopolies?

A
The cost of production restricts competition in the market.
B
There are limited natural resources to meet demand.
C
Consumers only trust known companies to provide these essentials.
D
There is no need for alternative options.
3

Which of the following best describes the circular flow model?

A
The model represents the movement of money throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services between sectors.
D
The model represents the changing relationships between actors.
4

elasticityqualitytimequantity

A
elasticity
B
quality
C
time
D
quantity
5

The highest amount a landlord can charge for rent is an example of

a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.
6

What term is used in macroeconomics to describe the total supply and the total demand?

c
capital
i
inflation
a
aggregate
e
equilibrium
7

Government officials in Country M have determined that they need to take action to encourage the growth of their economy. To do this, they have introduced an incentive policy that offers citizens free education. This is extended to all individuals who sign a contract agreeing to work within their specific industry for the next ten years.

e
education to reduce unemployment and increase production.
n
new technologies to produce goods that are in great demand.
r
resources that can be traded with other nations.
r
research to develop goods that can be sold on a global scale.
8

What is the difference between inflation and deflation?

I
Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.
I
Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.
I
Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money.
I
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
9

most likely

Question illustration
T
The marginal cost will most likely decrease to $1.00
T
The marginal cost will most likely increase to $2.00
T
The marginal revenue will most likely decrease to $8.00.
T
The marginal revenue will most likely increase to $12.00.
10

most likely

T
The store owner would most likely raise the price of the spring jeans to encourage producers.
T
The store owner would most likely lower the price of the spring jeans to encourage producers.
T
The store owner would most likely raise the price of the spring jeans to encourage consumers.
T
The store owner would most likely lower the price of the spring jeans to encourage consumers.
11

most likely

Question illustration
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
12

best

e
efficient
f
fast
a
accurate
p
prolific
13

private closefactor

A
private
B
close
C
factor
14

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.
15

nominal measurementconsumer price indexannual rateUS Bureau of Labor statistic

A
nominal measurement
B
consumer price index
C
annual rate
D
US Bureau of Labor statistic

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