During the time period represented in Figure 7.3, the purchasing power of the average workerÂ
A. Decreased because nominal income decreased.
B. Stay the same because COLAs reduced purchasing power.
C. Decreased because real income decreased.
D. Increased because nominal wages increased.
Answer: C
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Which of the following statements is true about Tyson Foods, Inc?
a. The company has faced synchronized movements in the prices of its inputs in the recent past. b. Tyson has been able to keep its chicken prices more or less stable over the last five years because the prices of its major inputs have not fluctuated too much. c. The company restructured itself to deal with the more complex risks associated with the business today. d. Tyson assigned responsibilities of risk management to employees familiar with the different commodities it handled in order to establish a self-contained unit.
Briefly and concisely define the following concepts and terms
a. marginal social cost b. detrimental externalities c. free-rider problem d. cost disease e. "defective telescopic faculty"
One principle that nearly all economists agree on when defining money is that it should be
a. spendable. b. liquid. c. accepted as payment. d. easily transferable. e. All of the above are correct.
Three workers run a house painting business and always work the same number of hours together. The paint they use requires applying two coats. Each worker paints 200 square feet per hour using a roller or 80 square feet per hour using a brush. If a technological advance provides a paint that only requires one coat, their average labor productivity per hour as a team:
A. increases. B. remains the same. C. may either increase or decrease. D. decreases.