An indexed payment is one
A. whose real value changes with the rate of change in the price level.
B. whose nominal value is held constant.
C. whose dollar value changes with the rate of change in the price level.
D. whose nominal value is equal to its value.
Ans: C. whose dollar value changes with the rate of change in the price level.
You might also like to view...
The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold. B) joint profit is $798. C) joint profit will be maximized. D) Nick will sell as many as he can.
The long-run average total cost curve is U-shaped because:
a. a firm initially experiences economies of scale and then diseconomies of scale. b. the law of diminishing returns to a factor sets in beyond a certain level of output. c. a firm initially experiences diseconomies of scale and then economies of scale. d. division of labor keeps labor productivity constant irrespective of expansion or contraction in production. e. the efficiency of capital increases over a period of time.
Varying the quantity of output produced and sold at preset prices is called:
A. self-correcting economics. B. Okun's law. C. meeting demand. D. spurring inflation.
Economic models
A) are used to explain how people think. B) are used to explain how people behave. C) are essential representations of the real world. D) are used to explore the thought processes of individuals or groups.