If the price level increases by 5 percent and the nominal wage increases by 3.5 percent, the real wage will decrease by 1.5 percent
a. True
b. False
Indicate whether the statement is true or false
True
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When a firm has earnings it has not yet paid out to the owners, those earnings are called
A) surplus capital. B) cash reserves. C) unearned income. D) retained earnings.
A monopoly firm can sell as much output as it wants at whatever price it sets
a. True b. False Indicate whether the statement is true or false
A marketplace where savers and borrowers can exchange funds directly is called a _____
a. bond market b. financial market c. stock market d. loanable funds market
Juanita has just opened a new business selling pet supplies through the Internet
A) Juanita is an entrepreneur. B) Juanita is not providing economic goods since people purchase the goods. C) Juanita is not providing economic goods since pet supplies are not being sold in a store. D) Juanita is not an entrepreneur since there are other businesses that sell pet supplies.