Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
What will be an ideal response?
your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased
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As the marginal propensity to consume (MPC) increases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes indefinable.
Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:
A. Inga and Ron to earn the same income. B. Inga to earn twice as much as Ron. C. Ron to earn more than Inga. D. Inga to earn more than Ron.
The cross price elasticity between A and B is 1.2. We can conclude that
A. goods A and B are unrelated. B. goods A and B are substitutes. C. goods A and B are complements. D. goods A and B are perfect substitutes.
The total return that the owner of a stock receives is the value of the dividends received minus the capital gain or loss.
Answer the following statement true (T) or false (F)