An individual who is suffering from money illusion is more concerned with
A. relative prices than with real prices.
B. relative prices than with nominal prices.
C. nominal prices than with relative prices.
D. real prices than with nominal prices.
Answer: C
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What is meant by comparative statics? Explain with an example
What will be an ideal response?
Consumers value the product-specific services for a new smartphone at $25 and the marginal cost to the retailers for providing the product-specific services is $20. From the manufacturer's perspective, a resale price maintenance agreement ________ be successful as it will ________ the equilibrium quantity sold.
A) will; increase B) will not; increase C) will not; decrease D) will; decrease
The standard of living in a nation depends on
A) how well its economy functions relative to other countries. B) the size of the country, with larger nations always doing better than smaller ones. C) how well the economy functions within that country. D) whether or not its currency is adopted as the world's monetary standard.
Labor unions may attempt to raise wage rates by
A. forcing employers, under the threat of a strike, to pay above-equilibrium wage rates. B. increasing the price of complementary resources. C. increasing the supply of labor. D. decreasing the demand for labor.