The real-nominal principle states that:
A. people respond more to explicit, or real, costs than to implicit costs.
B. people respond more to implicit costs than to explicit costs.
C. what matters to people is the face value of money or income.
D. what matters to people is the purchasing power of money or income.
Answer: D
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According to your textbook, the following is the prime cause of traffic congestion:
A) Population growth B) The American automobile industry C) Most roadway space is not priced. D) A lack of commitment to public transportation expansion
Refer to Figure 4-18. How much of the tax is paid by producers?
A) $45 B) $8 C) $3 D) $2
Policies focused on putting people to work by having them construct parks would be considered
A. demand-side policies. B. demand-side and supply-side policies. C. monetary policies. D. supply-side policies.
When demand is elastic, if we were to lower price, total revenue would ________; when demand is inelastic, if we were to lower price, total revenue would ________.
Fill in the blank(s) with the appropriate word(s).