The wage paid to workers measured in terms of real purchasing power is called the:
A. cost of living.
B. minimum wage.
C. real wage.
D. nominal wage.
Answer: C
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The characteristic of limited liability enables corporations to
A) avoid taxes on some of their profits. B) exist even when owners die. C) raise large amounts of financial capital. D) start up and dissolve easily.
At the beginning of a year, decision makers expect the general level of prices to increase at a 3 percent annual rate. The CPI increases from 150 to 154.5 during the year; this is an example of
a. an inflation rate that is equal to 4.5 percent. b. an unanticipated increase in the general level of prices. c. an increase in the general level of prices that was accurately anticipated. d. an inflation rate that is less than what people anticipated.
Even though firms in competitive price-searcher markets do not produce at minimum ATC, competitive price-searcher markets may still be consistent with economic efficiency because
a. strict government regulations force the firms in these markets to keep their costs low. b. they provide consumers with a greater diversity of products. c. they encourage more advertising in both price-searcher and price-taker markets. d. special legal protections for price searchers make it possible for them to more efficiently use resources.
The opportunity cost of an action is
a. the monetary payment the action required. b. the total time spent by all parties in carrying out the action. c. the value of the best opportunity that must be sacrificed in order to take the action. d. the cost of all alternative actions that could have been taken, added together.