The percentage change in one's real income can be approximated by:
a. Dividing real income by the price level, expressed as an index number
b. Dividing the price level, expressed as an index number, by nominal income
c. The percentage change in price level minus the percentage change in nominal income
d. The percentage change in nominal income minus the percentage change in the price level
d. The percentage change in nominal income minus the percentage change in the price level
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Option A provides $9,000 with probability 50 percent or $11,000 with probability 50 percent. Option B provides $8,000 with probability 50 percent or $12,000 with probability 50 percent. For most people the cost of risk associated with B is
A) less than that associated with A. B) the same as that associated with A. C) exactly twice that associated with A. D) more than twice that associated with A.
If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from ________ U.S. dollars per franc to ________ U.S. dollars per franc
A) 0.80; 0.67 B) 0.67; 0.80 C) 0.50; 0.33 D) 0.33; 0.50
The more elastic the demand curve, a monopoly
A) will have a larger Lerner Index. B) will face a lower marginal cost. C) will earn more profit. D) will lose more sales as it raises its price.
If a firm experiences diminishing marginal productivity of labor, the total-cost curve gets flatter as the quantity of output increases
a. true b. false