Each week Jim buys the same market basket composed of a case of ramen noodles, two bottles of coke, and three bags of tortilla chips. Jim has found that it takes more of his wages to buy this market basket than before. We can say ________.
A. Jim's real wage has gone down
B. Jim's after tax wage has gone down
C. Jim must be buying higher quality products
D. Jim's nominal wage has gone down
Answer: A
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In a competitive market economy, a resource in short supply will be allocated
a. so that each firm gets enough to keep producing some portion of its output. b. according to how much each firm purchased before the shortage. c. to those firms that can make the most profitable use of it. d. by government fiat.
Which of the following is an example of an organization using marginal analysis?
a. A government official considering what effect an increase in military goods production will have on the production of consumer goods. b. A farmer hoping for rain. c. A businessman calculating economics profits. d. A hotel manager calculating the average cost per guest for the past year.
Which of the following adopted reforms that have substantially improved their economic freedom rating since 1980?
What will be an ideal response?
A consumer's reservation price is the price at which a:
A. consumer prefers to purchase at the lowest observed price rather than to engage in another search. B. consumer is indifferent between searching again and purchasing at the lowest observed price. C. producer is indifferent between selling the product and not selling the product. D. consumer prefers to search rather than purchasing at the lowest observed price.