If the price of a slice of pizza falls, Tom can
A) buy more pizza with his paycheck.
B) buy more soft drinks with his paycheck.
C) no longer afford pizza on his paycheck.
D) Either A or B is possible.
Answer: A
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Economists who believe in activist policy making argue that
A) only planned changes in the money supply impact the economy. B) only increases in the minimum wage levels improve economic well-being. C) decreases in aggregate demand definitely impact the economy in the short run. D) decreases in aggregate demand impact the economy only in the short run.
How does the Fed intervene in the foreign exchange market and what the effects are of the Fed's actions?
What will be an ideal response?
The Austrian school of economists stressed on the efficiency of the markets on the pretext that:
a. resources could be efficiently allocated through price system and free markets. b. governmental intervention was necessary for the efficient allocation of resources. c. the price charged under the free market system was always lower than under central planning. d. the market had never failed earlier. e. the market did not suffer from imperfect information.
Piecework compensation plans are useful when productivity is difficult to measure
Indicate whether the statement is true or false