Suppose the economy includes two distinct groups of people: wage earners and goods sellers. If the price level increases by 50 percent and nominal wages remain unchanged,
a. there will be no redistribution of purchasing power because all private wage earners in the U.S. economy receive indexed wages
b. real wages will remain the same because nominal wages do not change
c. there will be no redistribution of purchasing power because only changes in real income can change the distribution of income
d. income will be redistributed from wage earners to goods sellers
e. income will be redistributed from goods sellers to wage earners
D
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When a firm hires a worker for one hour, the marginal cost to that firm equals the:
A. hourly wage of that worker. B. diminishing marginal productivity of that worker. C. price of each item that the worker produces in that hour. D. average total cost of production at the quantity produced.
Since actual budget deficits surpassed 10 percent of GDP in 2009:
A. fiscal policy has become contractionary. B. the deficits as a percentage of GDP have fallen, but fiscal policy has remained expansionary. C. deficits as a percentage of GDP have continued to rise. D. deficits as a percentage of GDP have remained constant but risen in dollar amounts.
Researchers estimate QALYs in a number of different ways. One popular approach is called
a. the probability approach b. the QoL approach c. the standard gamble d. the standard measure of well-being e. the utility of life approach
When the demand curve shifts to the right and supply doesn't change:
A. equilibrium quantity will rise. B. quantity demanded will rise. C. supply will rise. D. equilibrium price will fall.