Which of the following is generally true of nominal wages?
a. In the long run, nominal wages tend to equal real wages
b. Nominal wages are more flexible downward than upward.
c. Nominal wages are more flexible than prices.
d. Nominal wages tend to adjust slowly in the downward direction.
e. Nominal wages do not rise during labor shortages.
d
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The table above gives the demand schedule for snow peas. The price elasticity of demand between $6.00 and $7.00 per bushel is
A) 1.0. B) 2.0. C) 2.6. D) 5.0.
Some nonprice determinants of demand are:
A. consumer preferences, expectations of future prices, and the number of buyers in the market. B. consumer preferences, the price of the good, and incomes. C. incomes, expectations of future prices, and the number of sellers in the market. D. prices of related goods, knowledge of past prices, and the number of buyers in the market.
At the socially optimal equilibrium, _____
a. social cost exceeds private cost b. a market is allocatively efficient c. the marginal private cost of a given level of output is equal to the marginal social benefit d. the marginal private cost of a given level of output is greater than the marginal social benefit
According to the Keynesian view, which of the following would most likely stimulate real output if an economy were in a recession?
a. a decrease in tax rates b. an increase in tax rates c. a reduction in government expenditures d. a budget surplus