Recently a teachers' union argued that the standard of living of teachers working for the school district was falling. The negotiating team for the school board replied that this was not true because the teachers had received significant increases in nominal income through collective bargaining. Could the union statement be correct?
A. No, because real income may rise if price increases are proportionately greater than the
increases in nominal income
B. Yes, because real income may fall if price increases are proportionately smaller than the
increases in nominal income
C. Yes, because real income may fall if price increases are proportionately greater than the increases in nominal income
D. No, because real income may rise if price increases are proportionately greater than
declines in nominal income
C. Yes, because real income may fall if price increases are proportionately greater than the increases in nominal income
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In drawing a straight-line production possibilities curve for an economy that produces oil and corn, we assume that resources (for example, the number of labor hours)
a. are fixed b. increase at a constant rate c. increase at an increasing rate d. increase at a decreasing rate e. are not uniform, such as a variety of skills and quality of work
Economists generally agree that the most important tax in the U.S. economy is the
a. income tax. b. tax on labor. c. inheritance or death tax. d. tax on corporate profits.
Compare how exports and imports affect consumers and producers in a domestic economy.
What will be an ideal response?
The Lorenz curve shows the
a. functional distribution of income b. personal distribution of income c. relative percentage of income going to each of the resources d. demand for unskilled versus unskilled labor e. cumulative percentage of income received by cumulative percentages of households