Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices are cut in half in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time.
B. It will cut the payoff time to 1/2 of the original time.
C. It will cut the payoff time to 2/3 of the original time.
D. It will double your payoff time.
Answer: B
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When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator
a. True b. False Indicate whether the statement is true or false
According to the following figure, at point A,
A. the ratio of the price of X to the price of Y is greater than it is at point B. B. the marginal rate of substitution of X for Y is greater than it is at point B. C. the consumer's utility is less than it is at point B. D. both a and c E. all of the above
A pay cap, acting as a price ceiling, for superintendent pay would do what in the labor market?
A. Decrease the supply of superintendents. B. Cause a shortage of superintendents. C. Increase the demand of superintendents. D. Cause a surplus of superintendents.
Refer to the diagram. This economy will experience unemployment if it produces at point:
A. A.
B. B.
C. C.
D. D.