Nominal monthly wages increase from $1,500 to $1,800 while the price level increases by 4 percent. The percentage change in real monthly wages is about:
A. 10 percent
B. 12 percent
C. 14 percent
D. 16 percent
D. 16 percent
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The rationality assumption says that
A) people do not intentionally make decisions that would leave them worse off. B) people never make decisions that would leave them worse off. C) people do not respond to incentives since incentives require scarce resources. D) all economic analysis must be normative.
Large corporations dominate the planet's economy.
Indicate whether the statement is true or false.
The concept of absolute advantage relies on
A) the idea of comparative advantage. B) the ability to produce more units of an item with a given amount of resources. C) the idea of opportunity cost. D) the concept of economic efficiency as measured on the production possibility curve.
Explain the costs and benefits of a single currency
What will be an ideal response?