Suppose Moni thinks a 100 percent increase in her hourly wage is an incentive to work more hours while the price level also increases by 100 percent. Moni is said to be suffering from
A. money illusion.
B. irrationality.
C. rationality.
D. the effects of competition.
Answer: A
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During crisis periods, such as major snowstorms, the prices of basic goods, such as bread and milk rise. The price increases are clear evidence of
A) price gouging. B) government regulation. C) the market making it possible for the people who place the highest monetary value on bread and milk get bread and milk. D) corruption.
The United States has a dual banking system in the sense that
A) the public may deposit money in either commercial banks or savings-and-loan associations. B) banks offer both demand deposits and time deposits to savers. C) banks are chartered by the federal government and by state governments. D) banks both take in deposits and make loans.
Innovative firms face competition much more quickly than they did one hundred years ago
a. True b. False Indicate whether the statement is true or false
The rationing mechanisms that develop under binding price floors are usually efficient
a. True b. False Indicate whether the statement is true or false