You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully
Real income is nominal income adjusted for general increase in prices. If your paycheck is higher this year than last, your nominal income has increased. Whether your real income has increased or not depends on what has happened since last year to the level of prices of things you buy. If the percentage increase in prices is less than the percentage increase in nominal income, then real income has increased. If the percentage increase in prices is greater than the percentage increase in nominal income, the real income has decreases.
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In order for a Pigouvian subsidy to be efficient, the amount it costs the government to implement the subsidy must be less than the economic value of the additional externality benefits created by the subsidy.
Answer the following statement true (T) or false (F)
Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949 B) 1950-1973 C) 1974-1995 D) 2006-2014
Standardized tests do not receive universal acceptance as being helpful in making schools more accountable. Discuss why.
What will be an ideal response?
Hailey has decided to eat lunch between classes. She has ranked her choices, from highest to lowest as, (1) turkey sandwich, (2) tuna sandwich, (3) slice of cheese pizza, (4) fish taco. The opportunity cost of the eating turkey sandwich is
A. the combined value of the tuna sandwich, cheese pizza and fish taco. B. zero since she has satisfied a want. C. the value of the fish taco. D. the value of tuna sandwich, the next best choice.