Why does inflation cause problems in a society?
A) It gives people an incentive to hold money rather than spend it and provide income for others.
B) It makes everything more expensive in real terms.
C) People aren't able to anticipate it accurately.
D) The cost of living rises for almost everyone in an inflation.
E) For all of the above reasons.
C
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Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic. E) perfectly inelastic.
Sam consumes only sandwiches and soda and maximizes his total utility. Suppose that the price of a sandwich falls. At the new consumer equilibrium, Sam substitutes ________ for ________
Sam's marginal utility from soda ________ and his marginal utility per dollar spent on sandwiches ________. A) sandwiches; soda; increases; increases B) soda; sandwiches; decreases; increases C) sandwiches; soda; increases; decreases D) soda; sandwiches; stays the same; stays the same