If a firm is successful in its efforts to reduce the price elasticity of demand for its product, all else constant, the optimal markup that can be used in setting price will increase
Indicate whether the statement is true or false
TRUE
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Billy is a plumber. He earns $15 per hour. One morning, just before he was leaving for work, he found a pipe in his kitchen leaking. He spent two hours repairing the pipe
i) How will this affect the calculation of GDP? ii) If Billy had spent two hours working for one of his clients, what would have been the effect of his activity on the calculation of GDP?
The real wage can increase only if the nominal wage increases
a. True b. False
Which of the following is a tool of monetary policy?
A. Open-market operations. B. Changes in banking laws. C. Changes in tax rates. D. Changes in government spending.
Refer to the given data. If disposable income was $325, we would expect consumption to be:
A. $315.
B. $305.
C. $20.
D. $290.