If the 1999 salary in 2009 dollars is $174,136, what can we say about it compared to the 2009 income given in the table shown?
A. Although the nominal salary has increased, the amount of purchasing power has remained the same from 1999 to 2009.
B. The increase in salary from 1999 to 2009 was more than inflation during that period.
C. The 1999 salary could buy more goods and services in 2009 than the 2009 salary could buy.
D. All of these statements are true.
C. The 1999 salary could buy more goods and services in 2009 than the 2009 salary could buy.
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Using figures for both the short run and the long run, show the effects of a permanent increase in the U.S. money supply. Try to line up your figures to the short and long run equilibria side by side. Assume that the U.S
real national income is constant.
Diseconomies of scale exist for all of the following reasons except
a. bureaucratic inefficiencies b. management problems c. failures in information flows d. firm size is too small e. organizational problems
Economists suggest that a market can fail if
A. consumers have to pay more than they want to. B. the good or service is such that consumers are unable to make well-informed decisions about its consumption. C. producers get smaller profits than they desire. D. governments dictate prices.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.