If a Dollar a Year from Now Will Likely Have

question 33

Multiple Choice

If a dollar a year from now will likely have less purchasing power because of inflation, then a dollar today ________ a dollar a year from now.

• A)is more valuable than
• B)is less valuable than
• C)has the same value as
• D)may be more valuable or less valuable than

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Definitions:

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

Industry Concentration

A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.

Elastic

A measure in economics indicating how much the demand or supply of a good changes in response to a change in price.