Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?
a. Your real wage fell.
b. Your nominal wage fell.
c. Both your nominal and real wages decreased.
d. Although your nominal wage fell, your real wage increased.
e. Both nominal and real wages increased.
A
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According to the diagram in the figure above, what is the marginal cost of producing the 3 millionth gallon of gasoline per month?
A) 5 pounds of shrimp per gallon of gasoline B) 4 pounds of shrimp per gallon of gasoline C) 3 pounds of shrimp per gallon of gasoline D) 1 pound of shrimp per gallon of gasoline
The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis. B) the price of good on the horizontal axis divided by the price of the good on the vertical axis. C) the marginal rate of substitution between the two goods in question. D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
The share of GDP going to federal taxes
A. has been about 16 to 20 percent for the past 40 years. B. has been about 35 percent for the past 40 years. C. was about 40 percent until the early 1980s and has dropped greatly since then. D. has risen steadily in the past 40 years to about 35 percent.
Monopolistically competitive firms face downward-sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition). B) sell differentiated products. C) A and/or B. D) None of the above.