The substitution effect refers to a change in the actual income of a potential consumer
a. True
b. False
Indicate whether the statement is true or false
False
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Consider the following: The relative price of movies this year has
A) increased. B) decreased. C) stayed the same. D) Not enough information has been given to calculate an answer.
A perfectly competitive industry has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. A downward sloping demand curve d. A downward sloping supply curve
The M1 definition of the money supply includes:
a. currency in circulation and checkable deposits. b. Federal Reserve Notes, gold certificates, and checkable deposits. c. Federal Reserve Notes and bank loans. d. None of these.
The real wage in Fantasyland has been constant since 1950. The nominal wage in 2015 was $100, and the Consumer Price Index (CPI) was 200 in 2015. What was the nominal wage in 2002 if the CPI was 50 in 2002?
A) Nominal wage = $25 B) Nominal wage = $400 C) Nominal wage = $100 D) Nominal wage = $250