If real income increases by 4 percent and the price level increases by 3 percent, nominal income must:
A. increase by 1 percent.
B. decrease by 7 percent.
C. decrease by 1 percent.
D. increase by 7 percent.
Answer: D
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Incremental costs
a. are the total costs of abatement and regulation linked to environmental policy b. include only explicit costs c. refer to the change in costs associated with an environmental policy initiative d. include only implicit costs
Marketopia's real GDP was $520 billion in 2014 and $550 billion in 2015. Its population was 150 million in 2014 and 155 million in 2015. On the other hand, Econland's real GDP was $200 billion in 2014 and $210 billion in 2015; and its population was 53 million in 2014 and 55 million in 2015. Which of the following statements is true?
A. Econland's GDP per capita increased from 2014 to 2015, while Marketopia's decreased. B. Marketopia's and Econland's GDP per capita both decreased from 2014 to 2015. C. Marketopia's GDP per capita increased from 2014 to 2015, while Econland's decreased. D. Marketopia's and Econland's GDP per capita both increased from 2014 to 2015.
In the circular flow model, rent, wages, interest, and profit paid flow from ________ through ________ to ________
A) firms; goods markets; firms B) households; factor markets; firms C) households; goods markets; firms as payment for goods D) firms; factor markets; households E) firms; goods markets; households
When economists refer to capital, they might mean
a. money b. human skills used in production c. stocks d. bonds e. bank loans