In 1975 tuition at Wattsomata University was $2,500 and the consumer price index was 80 . In 2011 tuition was $12,000 and the price index was 320 . Which of the following is correct?
a. Nominal and real tuition were both higher in 1975.
b. Nominal and real tuition were both higher in 2011.
c. Nominal tuition was higher in 1975, real tuition was higher in 2011.
d. Nominal tuition was higher in 2011, real tuition was higher in 1975.
b
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Team production is a production process in which
A) pay is based on group output. B) individuals specialize in mutually supportive tasks. C) competing groups perform identical tasks. D) individuals rotate from one task to another.
The flatter the demand curve that passes through a given point, the more elastic the demand
a. True b. False Indicate whether the statement is true or false
According to classical macroeconomic theory, the flexible interest rate
A. is the incentive that encourages businesses to obtain credit. B. will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied. C. will tend to rise when the supply of credit exceeds the demand for credit. D. ensures that saving cannot exceed investment spending for extended periods of time.
The marginal-utility-to-price ratio tells us that if the price of a good falls, then, ceteris paribus
a. its marginal-utility-to-price ratio falls b. its marginal-utility-to-price ratio rises c. its marginal utility falls d. its marginal utility rises e. consumers buy less of the good