An experienced software engineer starts a new job with a pay package that is 14 percent higher than her previous salary. The expected inflation in the economy is 10 percent. However, the actual inflation in the following year turns out to be 14 percent. Which of the following costs of inflation did she have to bear?
a. Menu costs
b. Shoe-leather costs
c. Unit-of-account costs
d. Time costs
c
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Refer to Table 4-4. If a minimum wage of $9.50 an hour is mandated, what is the quantity of labor demanded?
A) 380,000 B) 370,000 C) 360,000 D) 10,000
Which of the following is NOT an underlying characteristic of a smart group?
a. Aggregation b. Diversity of opinion c. Interdependence d. Decentralization
The existence of wage-related rent
a. is explained by the fact that people have different opportunity costs b. is explained by the fact that some people who work also own land c. indicates that wage rates can be higher than rents d. is a contradiction because workers' incomes derive from labor e. result from the different productivities of workers
Which of the following would most likely cause the price of wheat to decline?
a. an increase in the production costs of corn, a substitute for wheat b. a decrease in the price of soybeans, a substitute for wheat c. an increase in the price of fertilizer, a resource used to produce wheat d. a sandwich craze among Americans, causing increased demand for whole-wheat bread