Using the above figure, we can conclude that
A. L is preferred to K.
B. the consumer is indifferent between J and M.
C. the consumer will purchase goods at combination M.
D. K is the optimal combination of goods.
Answer: D
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If the working age population is 200 million, 150 million are employed, and 6 million are unemployed, the unemployment rate is
A) 3.0 percent. B) 25.0 percent. C) 4.0 percent. D) 12.0 percent. E) 3.8 percent.
Make use of a T-account to show the effect of the Fed's purchase of $5 billion worth of foreign government securities on the Fed's balance sheet (note: assume the Fed writes a check to purchase the securities)
What will be an ideal response?
What is the inflation rate that most people know and use?
a. Cost of Living b. Producer Price Index (PPI) c. Consumer Price Index (CPI) d. Wholesale Price Index
If prices rise by 4% in a year and nominal wages increase by only 2%, then real wages will
A. increase by 2%. B. decrease by 4%. C. decrease by 2%. D. decrease by 6%.