If real salaries decrease but norminal salaries do not this means that
A) the purchasing power of money has decreased.
B) prices have not changed.
C) prices have risen.
D) prices have fallen.
Answer: D) prices have fallen.
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Jamal, Lawson, and Kyle have been standing in line for almost an hour waiting to be served at Kirala, a popular new Japanese restaurant. It is possible that some of the people in line won't be served at all before the restaurant closes
Which of the following could explain why the restaurant does not simply raise prices high enough to eliminate the lines? a. In situations where consumption takes place publicly, demand for the product is also influenced by how many other people are buying the product. Consequently, a popular restaurant that increased its prices enough to eliminate lines might find that it had also eliminated its popularity. b. Firms may sometimes not raise their prices for fear that it violates people's sense of fairness and might alienate customers. c. The demand for restaurant meals is relatively elastic and if the firm raises prices it will lower its profits. A) a only B) a and b only C) a and c only D) a, b, and c
Bank runs are only a concern under a fractional-reserve banking system
a. True b. False Indicate whether the statement is true or false
Examples of monopolistically competitive markets include the markets for
a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils. d. All of the above are correct.
Which of the following does NOT decrease aggregate demand in the United States?
A. a decrease in the price of oil B. a decrease in GDP in Germany C. a decrease in government spending D. a decrease in the supply of money