Your wage this year is $15 per hour and the CPI is 178. Next year you get a raise to $17 and the CPI rises to 185. What has happened?
A) Your real and nominal wages have each increased by the same percentage.
B) Your real wage has increased but by a smaller percentage than your nominal wage.
C) Your nominal wage has increased but your real wage has declined.
D) Your nominal wage has increased but your real wage has not changed.
E) Your real wage rate has increased by a larger percentage than your nominal wage.
B
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To prevent shortages of cash during a crisis, the Fed: a. saves up cash in bank vaults around the country and the world. b. reduces liquidity in the economy so that more cash can be saved. c. sells U.S. government securities to commercial banks
d. demands interest payments on reserves held at the Fed. e. increases the discount rate.
A cartel is a group of sellers of a single product who have joined together in order to enjoy the advantages of perfect competition.
Answer the following statement true (T) or false (F)
When property rights are clearly defined, there is generally a
A. regulatory agency that handles externalities. B. common property problem. C. law that must be passed to ensure fairness. D. voluntary agreement that can be reached.
Refer to Figure 7.2. If Happy Times Theater charges one price to day customers and a different price to night customers, then the profit will be
A. $562.50. B. $374.25. C. $62.50. D. $150.00.