Question 1

Inflation that is driven by the rising cost of inputs including wages and salaries is called

Accepted Answer

A)  demand-pull inflation. 
B)  cost push inflation 
C)  stagflation. 
D)  profit push inflation 
A)  demand-pull inflation. 
B)  cost push inflation 
C)  stagflation. 
D)  profit push inflation B

Question 2

Gardiner Means examined the behavior of prices during the Great Depression and found that

Accepted Answer

A)  prices in the oligopoly sector declined much more than prices in the competitive sector. 
B)  prices in the oligopoly sector declined very little compared to prices in the competitive sector. 
C)  prices in the oligopoly sector declined at about the same rate as prices in the competitive sector. 
D)  prices in the oligopoly sector fell while prices in the competitive sector rose. 
A)  prices in the oligopoly sector declined much more than prices in the competitive sector. 
B)  prices in the oligopoly sector declined very little compared to prices in the competitive sector. 
C)  prices in the oligopoly sector declined at about the same rate as prices in the competitive sector. 
D)  prices in the oligopoly sector fell while prices in the competitive sector rose. B

Question 3

Inflation is defined as

Accepted Answer

A)  an increase in the quantity of goods in the consumer's basket. 
B)  an increase in the level of GDP. 
C)  an increase in the price of an important good like gasoline. 
D)  an increase in the overall level of prices. 
A)  an increase in the quantity of goods in the consumer's basket. 
B)  an increase in the level of GDP. 
C)  an increase in the price of an important good like gasoline. 
D)  an increase in the overall level of prices. D

Question 4

A prominent conservative view of inflation is that

Accepted Answer

A)  it is caused by high input costs, included high wages and salaries. 
B)  it is caused by a deficiency of aggregate demand. 
C)  it is caused by productivity rising faster than wages. 
D)  it is caused by excess aggregate demand. 
A)  it is caused by high input costs, included high wages and salaries. 
B)  it is caused by a deficiency of aggregate demand. 
C)  it is caused by productivity rising faster than wages. 
D)  it is caused by excess aggregate demand.

Question 5

Compare and contrast the different causes of inflation.
-What happens to prices in a major war situation? Why

Accepted Answer

The answer of Compare and contrast the different causes of...

Question 6

Explain the relationship of oligopolies and profit-push inflation.
-Describe how monopoly/oligopoly firms protect their profits. Can a firm owner in a competitive market do this? Explain.

Accepted Answer

The answer of Explain the relationship of oligopolies and profit-push...

Question 7

Explain why there has been inflation in every recession of the last fifty years.
-What has happened to prices in recessions since the 1950s? Why?

Accepted Answer

The answer of Explain why there has been inflation in...

Question 8

The only case of wage and price controls in the US during peacetime occurred

Accepted Answer

A)  during the Kennedy-Johnson administration. 
B)  during the administration of William Clinton. 
C)  during the administration of President Nixon. 
D)  during the administration of President Galbraith. 
A)  during the Kennedy-Johnson administration. 
B)  during the administration of William Clinton. 
C)  during the administration of President Nixon. 
D)  during the administration of President Galbraith.

Question 9

What are administered prices?

Accepted Answer

A)  prices that are determined by market forces. 
B)  prices that are determined by the government. 
C)  prices that are determined by corporations in the oligopoly sector. 
D)  prices that are different for large buyers than for individual consumers. 
A)  prices that are determined by market forces. 
B)  prices that are determined by the government. 
C)  prices that are determined by corporations in the oligopoly sector. 
D)  prices that are different for large buyers than for individual consumers.

Question 10

Whats defention of terms:
-demand-pull inflation

Accepted Answer

The answer of Whats defention of terms:
-demand-pull inflation...

Question 11

Explain the goal of wage and price controls.
-Describe historical examples of wage and price controls. Were they effective?

Accepted Answer

The answer of Explain the goal of wage and price...

Question 12

During World War II, the government imposed legal controls on prices. As a result there was

Accepted Answer

A)  no inflation at all. 
B)  repressed inflation. 
C)  stagflation. 
D)  demand-pull inflation 
A)  no inflation at all. 
B)  repressed inflation. 
C)  stagflation. 
D)  demand-pull inflation

Question 13

Compare and contrast the criticisms of price controls by conservative and progressive economists.
-What are conservative criticisms of price and wage controls? Progressive criticisms? How are they similar? Different?

Accepted Answer

The answer of Compare and contrast the criticisms of price...

Question 14

Describe how inflation is measured and, given appropriate data, calculate inflation.
-Assume the CPI rose from 117 to 123 between 2005-2006. What was the inflation rate?

Accepted Answer

The answer of Describe how inflation is measured and, given...

Question 15

The term, "stagflation," refers to

Accepted Answer

A)  inflation accompanied by low unemployment. 
B)  inflation at a time of excess aggregate demand. 
C)  inflation accompanied by high unemployment. 
D)  inflation caused by an expansion of the money supply. 
A)  inflation accompanied by low unemployment. 
B)  inflation at a time of excess aggregate demand. 
C)  inflation accompanied by high unemployment. 
D)  inflation caused by an expansion of the money supply.

Question 16

Describe how inflation is measured and, given appropriate data, calculate inflation.
-What are two measures of price levels introduced in this chapter? How are they similar; how are they different?

Accepted Answer

The answer of Describe how inflation is measured and, given...

Question 17

The US government implemented wage and price controls during World War II because

Accepted Answer

A)  there was a significant increase in the production of consumer goods. 
B)  there was a significant reduction in the production of consumer goods. 
C)  there was a major increase in demand by government for consumer goods. 
D)  consumer goods manufacturers were worried about falling prices of consumer goods. 
A)  there was a significant increase in the production of consumer goods. 
B)  there was a significant reduction in the production of consumer goods. 
C)  there was a major increase in demand by government for consumer goods. 
D)  consumer goods manufacturers were worried about falling prices of consumer goods.

Question 18

Whats defention of terms:
-inflation

Accepted Answer

The answer of Whats defention of terms:
-inflation...

Question 19

Which group of people is likely to be the most concerned about inflation?

Accepted Answer

A)  individuals whose wages are indexed to the rate of inflation. 
B)  businesses selling goods that are relatively price inelastic. 
C)  Retirees on a fixed income. 
D)  Corporations with a significant degree of monopoly power. 
A)  individuals whose wages are indexed to the rate of inflation. 
B)  businesses selling goods that are relatively price inelastic. 
C)  Retirees on a fixed income. 
D)  Corporations with a significant degree of monopoly power.

Question 20

Explain the goal of wage and price controls.
-Why would wage and price controls be used? What are the "controls" attempting to control?

Accepted Answer

The answer of Explain the goal of wage and price...

Exam 50: Inflation

Inflation that is driven by the rising cost of inputs including wages and salaries is called

Gardiner Means examined the behavior of prices during the Great Depression and found that

Inflation is defined as

A prominent conservative view of inflation is that

Compare and contrast the different causes of inflation. -What happens to prices in a major war situation? Why

Explain the relationship of oligopolies and profit-push inflation. -Describe how monopoly/oligopoly firms protect their profits. Can a firm owner in a competitive market do this? Explain.

Explain why there has been inflation in every recession of the last fifty years. -What has happened to prices in recessions since the 1950s? Why?

The only case of wage and price controls in the US during peacetime occurred

What are administered prices?

Whats defention of terms: -demand-pull inflation

Explain the goal of wage and price controls. -Describe historical examples of wage and price controls. Were they effective?

During World War II, the government imposed legal controls on prices. As a result there was

Compare and contrast the criticisms of price controls by conservative and progressive economists. -What are conservative criticisms of price and wage controls? Progressive criticisms? How are they similar? Different?

Describe how inflation is measured and, given appropriate data, calculate inflation. -Assume the CPI rose from 117 to 123 between 2005-2006. What was the inflation rate?

The term, "stagflation," refers to

Describe how inflation is measured and, given appropriate data, calculate inflation. -What are two measures of price levels introduced in this chapter? How are they similar; how are they different?

The US government implemented wage and price controls during World War II because

Whats defention of terms: -inflation

Which group of people is likely to be the most concerned about inflation?

Explain the goal of wage and price controls. -Why would wage and price controls be used? What are the "controls" attempting to control?

Prehistoric Communal Institutions in the Middle East

Communal Equality to Slavery in the Middle East

Slavery to Feudalism in Western Europe

Feudalism and Paternalism in England

Feudalism to Capitalism in England

Mercantilism in England

Pre-Capitalism to Industrial Capitalism in the United States 1776-1865

Classical Liberalism Defense of Industrial Capitalism

Socialist Protest Against Industrial Capitalism

Marx Critique and Alternative to Capitalism

Rise of Corporate Capitalism in the United States, 1865-1900

Neoclassical Economics Defense of Corporate Capitalism

Veblen Critique of Corporate Capitalism

Growth and Depression in the United States, 1900-1940

Keynesian Economics and the Great Depression

The United States and Global Capitalism, 1940-2006

Robinson Crusoe Two Perspectives on Microeconomics

The Two Americas Inequality, Class, and Conflict

Inequality, Exploitation, and Economic Institutions

Prices, Profits, and Exploitation

Market Power and Global Corporations

Economics of Racial and Gender Discrimination

Environmental Devastation

Government and Inequality

Economic Democracy

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Simple Analytics of Supply and Demand

Consumption Theory: Demand

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Costs of Production

Work and Wages Neoclassical View of Income Distribution

Prices and Profits in Perfect Competition

Monopoly, Power, Prices, and Profits

Monopolistic Competition and Oligopoly

Market Failures Public Goods, Market Power, and Externalities

History of Business Cycles and Human Misery

National Income Accounting How to Map the Circulation of Money and Goods

Money and Profit Says Law and Institutionalist Criticism

Neoclassical View of Aggregate Supply and Demand

Keynesian View of Aggregate Supply and Demand

How to Measure Instability

Consumer Spending and Labor Income

Investment Spending and Profit

The Multiplier

Business Cycles and Unemployment

Growth and Waste

Fiscal Policy

Government Spending and Taxes

Money, Banking, and Credit

Monetary Policy

Exports and Imports

International Trade, Investment, and Finance How Instability Spreads Around the World

Debate on Globalization

Debate on Free Trade

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