Last year the Jones family earned $40,000. This year their income is $42,000. In an economy with an inflation rate of 10 percent, which of the following is correct?
A. The Jones' nominal income and real income have both fallen.
B. The Jones' nominal income and real income have both risen.
C. The Jones' nominal income has increased and their real income has fallen.
D. The Jones' nominal income has decreased and their real income has risen.
Answer: C
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In contrast to first-dollar insurance coverage, one concern about HMOs is that:
A. patients will receive more medical care than they need. B. the price of medical care will be too low. C. acute treatment will be overemphasized. D. patients will not receive adequate medical care.
Figure 7-7
In Figure 7-7 at 100 units, AVC equals
A. 8. B. 800. C. 100. D. 1,000.
The largest single holder of the U.S. national debt after the U.S. government is
A. The foreign sector. B. U.S. businesses. C. The private sector. D. None of the choices are correct.
Gross domestic product (GDP) can be calculated using either the expenditure method or the income method.
Answer the following statement true (T) or false (F)