The price of a new textbook increased from $100 to $120 in one year, while the price of a used textbook increased by 20 percent. What happened to the relative price of a used textbook?
A) It decreased by 25 percent.
B) It increased by 20 percent.
C) It remained constant.
D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
Answer: C
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The Riegel-Neal Act of 1994 made reciprocity pacts
A) legal. B) illegal. C) irrelevant. D) temporary.
Suppose Chip's Chips produces bags of potato chips. An example of a fixed cost for this company would be:
A. a potato peeling machine. B. the factory building. C. the deep fryer. D. All of these are examples of fixed costs.
Ultimately, the source of growth in real wages is the growth in labor productivity
a. True b. False Indicate whether the statement is true or false
Antitrust laws may
a. enhance the ability of firms to capture profits from a concentration of market power. b. enhance the ability of firms to reduce economic losses. c. restrict the ability of firms to operate at the socially efficient level of production. d. restrict the ability of firms to merge.