A general rise in prices is known as

a. fixed incomes
b. inflation
c. capitalism
d. voluntary exchange

Ans: b. inflation

Economics

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Jim is haggling with a car dealer, along with another customer, over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position would improve if

a. The other customer leaves b. He receives an offer from a competing car dealer c. He can make it clear that he will leave if his offer isn't accepted d. All of the above

Economics

Refer to the diagram. If this labor market is purely competitive, the wage rate and level of employment respectively will be:



A.  D and E.
B.  C and E.
C.  B and G.
D.  B and F.

Economics