Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. The real wages:
a. would increase by about 2 percent.
b. would decrease by about 5 percent.
c. would increase by about 50 percent.
d. would increase by about 10 percent.
e. would decrease by about 25 percent.
a
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Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level?
A) classical growth theory B) neoclassical growth theory C) new growth theory D) None of the above because all predict that there will be a sustained rise above the subsistence level.
The BRICs share all of the following EXCEPT
A) they are getting a rising share of international trade and foreign investment. B) they are easy places to do business. C) their governments have a lot of power and authority in economic affairs. D) to varying degrees they all present a new model, sometimes referred to as state capitalism.
The financial system is primarily a means by which
A) funds are transferred from savers to borrowers. B) money is put into circulation. C) the government puts into operation its plans for the economy. D) business firms distribute their goods.
In the extended version of the circular flow model,
a. resources flow from the government to firms b. taxes flow from foreign economies to the government c. goods and services flow from households to foreign economies d. resources flow from households to firms e. resource payments flow from households to the government