If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________
A) fallen; fallen
B) fallen; risen
C) risen; risen
D) risen; fallen
Answer: C
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Refer to Figure 10-6. Which diagram demonstrates a decrease in total utility following an increase in the price of candy?
A) the movement from e to d in Panel A B) the movement from g to f in Panel B C) the movement from k to h in Panel C D) none of the above
The observed change in the reserves of copper, lead, and zinc between 1960 and 1990 was most likely caused by
A. low prices discouraging exploration for new reserves. B. a slowdown in demand growth. C. high prices that stimulated exploration. D. the discovery of substitutes.
Which one of the following statements is true?
a. The demand for water tends to be price inelastic for both residential and irrigation uses b. The demand for water tends to be price elastic for both residential and irrigation uses c. The demand for water tends to be price elastic for residential uses but price inelastic for irrigation uses d. The demand for water tends to be price inelastic for residential uses but price elastic for irrigation uses e. The demand for water is more inelastic in the long run
An example of a quota that protects an American industry is the quota on
A. tourists entering the country. B. sugar imports. C. sales of oil products to foreign countries. D. purchases of military hardware to foreign dictators. E. All of the above are examples of protective quotas.