EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 28, Problem 8MCQ
To determine
To choose the option which is not a part of the costs of inflation.
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What type of inflation is caused by an increase in the purchasing power of people?
a.
Cost push
b.
Demand pull
c.
Built in
d.
Chronic
Which of the following statements about inflation is true?
A.
Inflation is not a problem because it is just another way for the government to collect
revenue—an
alternative to the income tax or the sales tax.
B.
Inflation is a tax on holding money.
C.
Inflation occurs when real GDP grows more rapidly than the quantity of money.
D.
Inflation is a tax on spending money.
Which of these is not a negative effect of inflation?
a.
It lowers down the value of money
b.
It rises the level of employment
c.
It increases the price of goods and services
d.
It lowers down the purchasing power of people
Chapter 28 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 28 - Prob. 1SPPACh. 28 - Prob. 2SPPACh. 28 - Prob. 3SPPACh. 28 - Prob. 4SPPACh. 28 - Prob. 5SPPACh. 28 - Prob. 6SPPACh. 28 - Prob. 7SPPACh. 28 - Prob. 8SPPACh. 28 - Prob. 9SPPACh. 28 - Prob. 10SPPA
Ch. 28 - Prob. 11SPPACh. 28 - Prob. 1IAPACh. 28 - Prob. 2IAPACh. 28 - Prob. 3IAPACh. 28 - Prob. 4IAPACh. 28 - Prob. 5IAPACh. 28 - Prob. 6IAPACh. 28 - Prob. 7IAPACh. 28 - Prob. 8IAPACh. 28 - Prob. 9IAPACh. 28 - Prob. 10IAPACh. 28 - Prob. 11IAPACh. 28 - Prob. 12IAPACh. 28 - Prob. 1MCQCh. 28 - Prob. 2MCQCh. 28 - Prob. 3MCQCh. 28 - Prob. 4MCQCh. 28 - Prob. 5MCQCh. 28 - Prob. 6MCQCh. 28 - Prob. 7MCQCh. 28 - Prob. 8MCQ
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Similar questions
- What are the costs of inflation? a. All of the above b. Import becomes expensive c. Borrowers loose and creditors gain d. None of the above e. Fixed income earners gainarrow_forward3. Identifying costs of inflationLarry manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.arrow_forwardHow does excess money actually create inflation? Select one: a. By raising the amount of imports when the excess money is used to buy additional goods. b. By raising the cost of factors of production when producers attempt to increase output to meet the additional demand. c. By raising the rate of interest required to hold a greater money stock. d. By raising the time it takes to produce output. e. By raising the exchange rate.arrow_forward
- The following are causes of inflation EXCEPT: a. Money Supply b. Demand c. Rising income d. Underemployment The additional tax on top of the standard tax? a. surtax b. EVAT c. corporate tax d. statutory contributions Tourism industry is trying to get back from the effects of the pandemic. Some businessmen are willing to take risk and invest in business related to tourism and compete with current businesses that are already known in the industry. a. Oligopoly b. Monopoly c. Duopoly d. Perfect Competitionarrow_forwardhow important is the inflation for the common people in the community? explain.arrow_forwardGovernments critically analyze the impact of increasing minimum wages. Increasing wages is a risky decision for an economy because this might cause ___________. a. Cost push b. Hyperinflation c. to bring low cost of production d. Built in inflationarrow_forward
- 37. What type of inflation is caused by an increase in the purchasing power of people? a.Cost push b.Chronic c.Built in d.Demand pullarrow_forwardWhich of the following is not an economic effect of inflation? a. None O b. Difficulty in doing long term contracts c. Savings increases consumption decreases O d. Income distribution in favour of borrower e. Decrease in purchasing power of income.arrow_forwardde whetner this unexpected lower rate of inflation would help or hurt each of the following groups. a. A homeowner with a fixed-rate mortgage b. A union worker with a fixed labor contract. C. A company that has invested some of its endowment in government bond which pay fixed rate of return.arrow_forward
- 20) Some inflation is actually considered good. Explain why that is.arrow_forward(1) Inflation is a hectic problem of our economy especially in today's life. How this problem influences the economic activities in the country? Use your personal opinion to answer that what should we do to control inflation as it is also consumer's community that can contribute economy with consumption pattern of consumers. Make a meaningful report.arrow_forwardAnswer the following question in detail, showing every step of calculation and EXPLAINING why something happens when it happens, use diagram if appropriate. The answers must be typed in MS Word. 1. Suppose you bought shares of a company for TK 10,000 last year, this year you sold it for TK 20,000. You are supposed to pay a 10% tax on capital gain. Explain the impact of a 100% inflation on the capital / gain profit you make.arrow_forward
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