Indexing is the process of:
A. dividing a real quantity by a price index.
B. increasing a real quantity by an amount equal to the percentage change in a price index.
C. dividing a nominal quantity by a price index.
D. increasing a nominal quantity by an amount equal to the percentage change in a price index.
Answer: D
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In New York, a welfare recipient can earn $90 per month without having her benefits reduced. Beyond $90, benefits are reduced by 57 cents for every dollar of earnings. Consider Jackie, a resident of New York, who can earn $10 per hour. If she does not work at all, she is eligible for welfare benefits of $577.
What will be an ideal response?
A wage that allows people to pay for the necessities of life is known as a(n): a. equilibrium wage. b. minimum wage
c. living wage. d. fair wage. e. subsistence wage.
Refer to Figure f. A benefit function is plotted in Figure f. The distance C represents the:
A. risk premium of the consumption bundle.
B. expected utility of the consumption bundle.
C. certainty equivalent of the consumption bundle.
D. expected consumption.
Avner is maximizing total utility by buying sports magazines and protein supplements. For him to buy more sports magazines
A) the price of protein supplements has to fall. B) the price of sports magazines has to fall. C) the price of sports magazines has to rise. D) Since Avner is maximizing his utility, nothing can change the consumption of sports magazines.