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. the price level increases but at a decreasing rate.
d. worker is protected by fixed annual increases in wages and benefits in an employment contract.
e. government increases the level of social security retirement benefits to correct for the effects of unanticipated inflation.
b
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Positive statements are
a. prescriptive. b. claims about how the world should be. c. claims about how the world is. d. made by economists speaking as policy advisers.
Economic theory suggests that if natural resources can be held as private property, then
A) conservation will be nonexistent. B) owners will have an incentive not to abuse them. C) natural resources will be sold off for immediate use. D) people will simply hold them and refuse to make them available.