In which of the following situations would an individual experience an increase in real wages?
a. Receiving a 5 percent increase in nominal wages while inflation was 6 percent
b. Taking a 3 percent cut in nominal wages while deflation was 4 percent
c. Taking a 1 percent cut in nominal wages while inflation was 1 percent
d. Receiving a 3 percent increase in nominal wages while inflation was 3 percent
e. Receiving no increase in nominal wages while inflation was 0 percent
B
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Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
A) an increase in the price of soybeans B) an increase in the demand for corn C) a decrease in the price of corn D) an increase in the price of soybean seeds
Is peak pricing economically efficient? Explain. Give an example to illustrate your answer.
What will be an ideal response?
Refer to the figure at right. Profits will equal zero
A. when the price equals $1
B. at prices between $1 and $2
C. when the price equals $2
D. when the price equals $4
Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order to sell more output. Marginal revenue will
a. equal $75 b. equal $70 c. be between $75 and $70 d. be less than $70 e. be greater than $75