Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then:
A. borrowers are hurt, but lenders benefit.
B. both lenders and borrowers benefit.
C. both lenders and borrowers are hurt.
D. lenders are hurt, but borrowers benefit.
Answer: D
Economics
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Welfare economics is the study of
a. taxes and subsidies. b. how technology is best put to use in the production of goods and services. c. government welfare programs for needy people. d. how the allocation of resources affects economic well-being.
Economics
The silverware industry has been in serious decline since the 1980s. Family dining habits are less formal so people purchase less silverware. Also, in 2006-2008, the price of silver increased from $5 to $20 per ounce. Which graph in Figure 4-12 best illustrates these developments?
a.
1
b.
2
c.
3
d.
4
Figure 4-12
Economics