If productivity growth is 2 percent and inflation is 5 percent, on average, nominal wage increases will be:
A. 5 percent.
B. 3 percent.
C. 2 percent.
D. 7 percent.
Answer: D
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When demand is elastic, the marginal revenue resulting from a decrease in price is:
A) positive. B) zero. C) negative. D) cannot be determined without more information.
In a flexible exchange-rate system, the value of a currency is determined by
A) the government. B) the intersection of the IS and LM curves. C) the demand and supply for the currency in the foreign exchange market. D) Swiss gnomes.
In time series data, it is useful to think of a randomized controlled experiment
A) consisting of the same subject being given different treatments at different points in time B) consisting of different subjects being given the same treatment at the same point in time C) as being non-existent (this is a time series after all, and there are no real "parallel universes" D) consisting of the at least two subjects being given different treatments at the same point in time
A pure private good has two characteristics: rivalry and excludability. Rivalry suggests that a private market, rather than the public sector, should produce the good, and excludability suggests a private market will provide it
a. True b. False