The consumption function shows that when disposable income increases by one dollar, consumption expenditure
A) does not change.
B) increases by more than a dollar.
C) increases by one dollar.
D) decreases by less than a dollar.
E) increases by less than a dollar.
E
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The government's profit from issuing fiat money is known as
A) seigniorage. B) menu costs. C) commodity profit. D) tax distortions.
Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?
a. The amount he spent, $10. b. Nothing, since he got his preferred choice. c. The Batman T-shirt. d. The X-Men T-shirt.
Prior to the 1996 Summer Olympics in Atlanta, Georgia, the city passed legislation that effectively prevented hotels from increasing their rates during the games. Describe the effects of this legislation on the market for hotel rooms during the games
If the actual price level is above the expected price level, then workers' actual real wage will be below their expected real wage.
a. true b. false