The price of food relative to other goods has:
A. fallen, making it harder to live on less income because other goods cost so much.
B. increased, making it easier to live on less income because other goods cost less.
C. fallen, making it easier to live on less income.
D. increased, making it harder to live on less income.
Answer: C
You might also like to view...
A market equilibrium is only efficient if:
A. the consumer surplus and the producer surplus associated with a given transaction are equal. B. output is distributed equitably among consumers. C. consumer surplus and producer surplus are both zero. D. all relevant costs and benefits are reflected in the market supply and demand curves.
The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP. B) changes in aggregate demand to have no short-run effects on real GDP. C) changes in aggregate demand to have long-run effects on real GDP. D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
A disadvantage of the barter system is that
A) no trade occurs. B) people must produce all their own food, clothing, and shelter. C) the opportunity to specialize is greatly reduced. D) gold is the only unit of account.
An increase in the real interest rate occurs when ________
A) monetary policy responds automatically to an increase in inflation B) expected inflation increases, relative to the nominal interest rate C) an increase in autonomous spending causes an increase in equilibrium output D) all of the above E) none of the above