For a given amount of nominal income, the real income will
A. rise as the price level rises.
B. fall if the price level falls.
C. fall if the price level rises.
D. be unaffected if the price level falls.
Answer: C
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Technological advances shift the supply curve rightward.
Answer the following statement true (T) or false (F)
Refer to Table 21.3. What are the median income and the mean income for Marklar. Are they the same?
What will be an ideal response?
If a firm uses labor to produce output, the firm's production function depicts the relationship between
a. the number of workers and the quantity of output. b. marginal product and marginal cost. c. the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor. d. fixed inputs and variable inputs in the short run.
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the consumer surplus from consuming taxicab services is represented by:
A. area ABF. B. area ACFG. C. area DEH. D. area BEFH.