Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income today into 1969 dollars.
B. take a ratio of their income today with their income from 1969.
C. translate their nominal income in 1969 into constant, real dollars of today.
D. None of these statements is true.
Answer: C
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If the tariffs on textiles, apparel items, and footwear mentioned in the Application were replaced by equivalent voluntary export restraints (VERs), who would benefit the most?
A) the U.S. government B) high-income consumers C) low-income consumers D) the foreign manufacturer
The expected effect of the Bush tax cuts would be a(n)
A. lower real interest rate. B. exchange rate depreciation. C. increased current account deficit. D. All of these responses are correct.
Joe is one mile from the finish of a grueling 26 mile marathon. Tim is at the four mile mark of a five mile run. Which runner is most likely to be emotionally energized for the race to the finish line?
A. Joe. B. Joe and Tim should be equally energized. C. Tim. D. Without knowing more about the runners there is no way to predict which runner will be most energized.
What is always true at the quantity where a firm's average total cost equals average revenue?
A) The firm's revenue is maximized. B) The firm's profit is maximized. C) The firm breaks even. D) Marginal cost equals marginal revenue.