The income effect of an inferior good is negative.
a. true
b. false
b. false
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Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?
A) Waldo's real income expressed in terms of pretzels is 40 bags of pretzels. B) Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches. C) The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich. D) All of the above answers are correct.
Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both Bo and Max confess. B) Both Bo and Max do not confess. C) Bo confesses while Max does not confess. D) Bo does not confess while Max confesses.
Which of the following is most important for the achievement of higher income levels and living standards?
A) production of additional goods and services that people value highly relative to the cost of their production B) an increase in total employment C) restriction of imports that expand employment in the protected industries D) increases in government spending that create jobs
If prices have increased since the base period, then
A) real GDP is larger than nominal GDP.
B) real GDP can no longer be compared to nominal GDP.
C) real GDP is equal to nominal GDP.
D) real GDP is smaller than nominal GDP.
E) there is no way to adjust nominal GDP so that it equals real GDP.