Countries like Germany, Russia, and Zimbabwe have experienced hyperinflation within the last century. It occurred mainly due to the
A. the lack of inflationary controls.
B. government mistakenly believed it could “inflate” way its debt.
C. government-run dictatorships.
D. government believed its policies would attract foreign investment.
Answer: B
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What does scarcity have to do with the fact that people must make choices?
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. The difference between the earnings of a college graduate and an unskilled worker constitute the rent on human capital. 2. Positive externalities created by human capital provide one explanation of why firms do not move more capital to low-wage areas. 3. If most employers discriminate on the basis of race, then wage differentials between whites and blacks will certainly occur. 4. If there is discrimination, employers engage in it at a cost. 5. One reason that the extent of discrimination is difficult to measure is that workers sometimes choose to accept lower-paying jobs even though higher-paying jobs are available.