The real wage
A) is the nominal wage divided by the price level.
B) automatically increases with the cost of living.
C) is the price level divided by the nominal wage.
D) is the nominal wage multiplied by the price level.
A
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When a minimum wage is ________, the firms' surplus and workers' surplus shrink, a deadweight loss ________, and resources are lost in job search
A) inefficient; arises B) inefficient; disappears C) efficient; arises D) efficient; disappears E) nonexistent; arises
Which of the following describes comparative advantage?
A) To produce a bushel of wheat Farmer John must give up 2 bushels of corn whereas Farmer Ben must give up 3 bushels of corn. B) Company A can produce 4 boxes of cereal in a day whereas Company B can produce 5 boxes of cereal in a day. C) Firm A can produce a good at a cost of $3 and Firm B can produce the good at a cost of $4. D) Jane can type 50 words per minute and Joe can type 60 words per minute.
The LRAC curve generally is
A) shaped as an upside-down U. B) U-shaped. C) upward sloping. D) downward sloping.
The best test of an economic theory is: a. the rigor of its mathematical formulation. b. its ability to explain and predict
c. the accuracy of its assumptions. d. the level of real-world detail it captures.