In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make about what happened to your real wages over this period?
A. They rose.
B. They fell.
C. They remained the same.
D. There is not enough information to determine whether they rose, fell, or remained the same.
B. They fell.
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Refer to the figure above. If the monopolist faces a constant marginal cost of $2, what is the optimal quantity that it should produce?
A) 20 units B) 40 units C) 45 units D) 80 units
Bundling
A) is when firms sell multiple separate goods together for a single price. B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging. C) increases transaction costs for consumers. D) is illegal in most U.S. states.
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, what would her variable cost include?
A. The cost of the fabric B. The sewing machine C. The measuring board D. Her variable cost would be zero if she produced zero bags.
Unemployment rates in many continental European countries have been consistently higher compared to the United States. The difference is mostly
a. due to differing monetary policies b. cyclical unemployment c. frictional unemployment d. structural unemployment e. seasonal unemployment