Nominal increases take into account inflation adjustments over a period of time.
Answer the following statement true (T) or false (F)
False
Real changes take into account inflation; nominal changes do not.
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The conditions for unaligned retailer and manufacturer incentives include
a. customers are unfamiliar with the product features before they shop for it b. retailers have no opportunity to educate consumers c. manufacturers are more efficient at education consumers d. demand for the product is decreased with some consumer education
For a typical consumer, indifference curves can intersect if they satisfy the property of transitivity
a. True b. False Indicate whether the statement is true or false
The opportunity cost of money is:
A. the price level. B. the nominal interest rate. C. the time spent going to the bank to withdraw funds. D. the fees charged by banks to provide checking services.
Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3 and the firm shuts down in the short run, its profit is:
A. -$300. B. -$600. C. -$900. D. -$1,200.