Ms. Mandelblatt made $25,000 in 1990, the base year. By 1995 she was earning $40,000. If the CPI was at 150 by 1995, how much were Ms. Mandelblatt real wages that year and by what percentage had they changed since 1990?
What will be an ideal response?
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If the slope of a demand curve is infinite, then the price elasticity of demand is:
A. one. B. zero. C. infinite. D. equal to the price of the good.
Which of the following is true of leakages and injections in the circular flow model? a. Leakages minus injections equal gross domestic product (GDP)
b. Injections minus leakages equal gross domestic product (GDP). c. Leakages minus injections equal zero in equilibrium. d. Leakages must be less than injections for an economy to be in equilibrium. e. Leakages must be greater than injections for an economy to be growing.
If real GDP has increased by 3 percent and nominal GDP has increased by 5 percent, then:
A. net factor income is 2 percent. B. inflation is 2 percent. C. depreciation is 2 percent. D. net exports are 2 percent.
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries?
A. Sheila B. Sheila and Jim C. Jim D. Neither of them