If workers and employers agree to a three-year wage contract under the expectation of 5 percent inflation, and inflation turns out to be 3 percent, then:

A. workers lose and employers gain.
B. workers lose and employers lose.
C. workers gain and employers gain.
D. workers gain and employers lose.

Answer: D

Economics

If a good is price inelastic, an increase in price will decrease total revenues

Indicate whether the statement is true or false

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Economics

Costs that are borne solely by the individuals who incur them are

A) private costs. B) social costs. C) external costs. D) transaction costs.

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Economics