Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2 . This implies that the price level has:
a. increased by 20 percent.
b. increased by 25 percent.
c. remained unchanged
d. fallen by 10 percent.
e. fallen by 20 percent.
d
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The U.S. economy is relatively open in terms of economic activity related to international trade.
Answer the following statement true (T) or false (F)
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets
A) negative B) constant C) decreasing D) increasing
The most common form of trading goods for goods is
a. bilateral trade. b. government commodity distribution. c. status-based trades. d. barter. e. payments in kind.
An increase in the unemployment rate would affect tax receipts and government expenditures by
A. reducing tax receipts and expenditures. B. increasing tax receipts and expenditures. C. reducing tax receipts and raising expenditures. D. raising tax receipts and reducing expenditures.