Suppose that the Consumer Price Index increased from 100 to 120 between 2011 and 2012. Your nominal wages rose during the same period from $200 a week to $260. By how much did your real income rise?
a. 30 percent
b. 16.7 percent
c. 8.33 percent
d. 12 percent
c. 8.33 percent
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According to the Rybczynski theorem, at constant world prices, if a country experiences a gain in its capital stock it will produce
A) more of the capital intensive good and less of the labor intensive good. B) more of both goods. C) less of the capital intensive good and more of the labor intensive good. D) less of both goods.
Predicting the impact of institutional change on the effectiveness of monetary policy is best done with a
A) structural model. B) reduced-form model. C) black-box model. D) scientific model.
The income transfers that a person receives from Social Security
A) is not related to the amount that they have contributed. B) is a yearly proportion of the amount contributed. C) is the same for everyone whether they contributed to the system or not. D) depends entirely on the amount received from private pensions.
Which statement is false?
A. Crime and drugs are central to the ghetto culture. B. Ghetto residents are more likely to be street crime victims than middle class people. C. A basic way to reduce crime would be to alleviate poverty. D. None of these statements are false.