Inflation:
a. reduces the cost-of-living of the typical worker.
b. is measured by changes in the cost of a typical market basket of goods between time periods.
c. causes the purchasing power of a dollar to rise.
d. has no effect on real income.
b
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A production function establishes the relationship between:
A) the market price of a good and the sales revenue generated. B) the quantity of output produced and the firm's profit. C) the quantity of inputs used and the quantity of output produced. D) the market price of a good and the quantity of output supplied.
If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A) there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs. B) individuals would have an excess desire to invest in their own human capital. C) too many individuals would want to take risky jobs. D) productivity levels would probably become too high.