Real wages are equal to
a. Nominal wages minus the inflation rate
b. Nominal wage divided by a price index
b. Nominal wage divided by a price index
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Natural monopolies in the United States are generally regulated by
A) the Department of Commerce. B) the Federal Trade Commission. C) local or state regulatory commissions. D) the Department of Justice.
Between 1960 and 1995, Social Security benefits:
A. increased from 10 percent to 35 percent. B. decreased from 35 percent down to 10 percent. C. increased, decreasing the poverty rate among the elderly from 35 percent down to 10 percent. D. decreased, increasing the poverty rate among the elderly from 10 percent to 35 percent.
A contractionary monetary policy tends to be more effective than a contractionary fiscal policy at strengthening the value of the exchange rate, because a contractionary monetary policy:
A. increases the interest rate and decreases imports, while contractionary fiscal policy decreases both the interest rate and imports. B. increases the interest rate and decreases exports, while a contractionary fiscal policy decreases both the interest rate and exports. C. decreases the interest rate and increases imports, while a contractionary fiscal policy increases both the interest rate and imports. D. decreases the interest rate and increases exports, while a contractionary fiscal policy increases both the interest rate and exports.
How are economists not like mathematicians, physicists, and biologists?
a. They devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. b. They use models to represent the real world. c. They try to address their subject with a scientist's objectivity. d. They cannot run lab experiments in the same way that other scientists can.