Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn
A) more than 5 times as much as your grandfather in terms of real income.
B) less than 5 times as much as your grandfather in terms of real income.
C) less than 5 times as much as your grandfather in terms of nominal income.
D) 5 times as much as your grandfather in terms of real income.
B
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The saving rate equals saving divided by:
A. income. B. wealth. C. liabilities. D. assets.
In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____
a. minimize their effort b. extract all the legislature's consumer surplus from the bureau's output c. maximize the bureau's profits d. maximize the budget's producer surplus by extracting from the legislature large rents
Why are interest rates considered to be the opportunity cost of investments?
Assume that the demand curve for product C is downsloping. If the price of C falls from $2.00 to $1.75:
A. a smaller quantity of C will be demanded. B. a larger quantity of C will be demanded. C. the demand for C will increase. D. the demand for C will decrease.