Question:

Economics Questions--HELP!?

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1)Which of the following policy measures would help prevent rapid inflation following the deregulation of prices?

A)Setting interest rates at a fixed and constant rate

B)maintaining price controls on some basic goods, such as bread and fuel

C)mantaining tight control over the money supply

D)creating an inflation board to monitor price increases

2)The role of the price of labor in a market economy is to

A)gurantee that resources are always allocated to their most efficient use

B)provide information about where resources are best employed and to give workers an incentive to work hard

C)ensure that workers are fairly paid for the work they do

D)motivate people to change jobs frequently, increasing the level of income in the economy

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1 ANSWERS


  1. The answer to the first question is C.

    The answer to the second question is probably B, but could be C depending on what the definition of "fair" is.

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