Your spouse complains that her 6% raise this year will not keep up with the increase in prices. In other words, she is unable to buy the same basket of goods with her 6% raise. Therefore, she believes that her
a. nominal income and real income increased.
b. nominal income increased, but their real income decreased.
c. nominal income and real income decreased.
d. nominal income decreased, but their real income increased.
b
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Which of the following is the term used to describe the expansion of a country's per capita real GDP?
A) change in factor incomes B) change in the labor force C) technological change D) economic growth
Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?
A) technological advances in digital camera production B) consumers' preferences changed in favor of digital cameras C) the price of film cameras fell D) workers who make digital cameras received a pay raise
The consumer surplus lost because monopolists restrict the production of output represents a welfare loss because: a. it is transferred to producers in the form of profit
b. consumers pay a higher price than they would in a more competitive market. c. society is not using its scarce resources in the best way possible. d. of both a. and b., but not c.
Outsourcing is a source of increased U.S. output.
Answer the following statement true (T) or false (F)