Define the following terms carefully: (a) Full employment (b) Purchasing power of money (c) Real wage rate (d) Relative price
(a) Full employment is a situation in which everyone who is willing and able to work can find a job. At full employment, the measured unemployment rate is still positive.
(b) The purchasing power of a given sum of money is the volume of goods and services that it will buy.
(c) The real wage rate is the wage rate adjusted for inflation. Specifically, it is the nominal wage divided by the price index. The real wage thus indicates the volume of goods and services that the nominal wages will buy.
(d) An item's relative price is its price in terms of some other item rather than in terms of dollars.
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Tariffs and import quotas both result in
A) lower levels of domestic production. B) the domestic government gaining revenue. C) lower levels of imports. D) higher levels of domestic consumption.
Limited liability is a benefit to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
The own price elasticity of Anne's apple pies is 5 . If the aggregate market for apple pies has an own price elasticity of 1.25, Anne's apple pies has an approximate market share of
a. 6.25% b. 25% c. 10% d. 20%
Describe and explain the three principle methods of financing used by corporations
What will be an ideal response?