Assume that your nominal wage was fixed at $25 an hour, and the price of gasoline fell from $4.00 to $1.50. In this case, your real wage (in terms of gasoline) has
A. decreased to $6.25.
B. increased to $10.
C. decreased to $16.66.
D. increased to $16.66.
Answer: D
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In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, then consumer surplus will be
A) $192 million. B) $108 million. C) $216 million. D) $60 million.
The bulk of offshoring is vertical, relating to producing a component piece in an overall supply chain production
Indicate whether the statement is true or false
Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that
a. real GDP and the price level are lower in country B. b. real GDP, but not the price level, is lower in country B. c. the price level, but not real GDP is lower in country B. d. neither the price level or real GDP is lower in country B.