An individual who suffers from money illusion will
A. feel that the same percentage increase in prices and income improves his economic position.
B. concentrate on relative prices.
C. only be concerned about the prices of a few goods.
D. never be fooled by the impact of price changes on the purchasing power of income.
Answer: A
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The position of a demand curve is unaffected by changes in the price of the good.
Answer the following statement true (T) or false (F)
What is the difference between price discrimination and predatory pricing?
What will be an ideal response?
Import standards on specific countries are:
A. more common than blanket standards. B. used in equal amount to blanket standards. C. less common than blanket standards. D. easier to enforce than blanket standards.
Whenever the marginal product of a firm's only variable input was positive, but falling: a. its total product is growing at a decreasing rate
b. it will use more of the variable input until its marginal product is negative. c. it would reduce its use of the variable input. d. its total product is beyond its maximum.