If the price of a good rises, then the effect on the income of the factors that are used intensively in its production will be
A) to raise income by an absolute amount that is less than the rise in prices.
B) to raise income by an absolute amount that is more than the rise in prices.
C) to raise income by a smaller percentage than the rise in prices.
D) to raise income by a greater percentage than the rise in prices.
E) to cause income to fall.
D
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Which of the following statements is positive?
A. When the Federal Reserve increases the money supply, interest rates decrease. B. Higher taxes are needed to support education. C. Large budget deficits should be avoided. D. A tax cut that benefits low-income households is acceptable.
Which of the following statements is false?
A. The issuer of a bond is a borrower. B. The person who buys a bond is a lender. C. Interest earned on corporate bonds is exempt from federal income taxes. D. The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.
As savings grow in an economy, economic growth rises
a. True b. False Indicate whether the statement is true or false
Would companies and individuals invest as much in significant research and development if a system of patents were not available? a. Yes they would, because they could still hope to monopolize the market
b. Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. c. No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. d. No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.