If the real wage needs to decrease to restore equilibrium in a labor market, this can happen by
A) keeping the nominal wage constant and allowing deflation to allow the real wage to decline.
B) keeping the nominal wage constant and allowing inflation to allow the real wage to decline.
C) raising the nominal wage and allowing deflation to allow the real wage to decline.
D) raising the nominal wage so long as there is no inflation occurring in the economy.
B
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The town of Ravenswood is trying to decide whether to hold its annual festival this year. The estimated cost of arranging the festival is $5,000 . About 2,000 people are expected to attend. Although the festival will be free and open to the public, the citizens of Ravenswood indicate that they would be willing to pay as much as $2 per person to attend. The best course of action for Ravenswood
would be _____. a. to host the festival b. to not host the festival c. to impose an entry fee of $0.5 d. to host the festival and deny entry to those who do not pay
Which of the following is true if there is a surplus of loanable funds?
What will be an ideal response?
Which of the following is most likely to be a monopoly?
A. The Washington Post newspaper B. Verizon, a wireless service provider C. a public water utility D. Ford, an auto manufacturer
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when:
A. The demand for money decreases B. The demand for money increases C. Investment demand decreases D. The discount rate increases