Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn
A) less than 5 times as much as your grandfather in terms of nominal income.
B) 5 times as much as your grandfather in terms of real income.
C) less than 5 times as much as your grandfather in terms of real income.
D) more than 5 times as much as your grandfather in terms of real income.
C
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If A and B are two disjoint sets, and "Pr" represents the probability, then Pr[A and B] will be:
a. negative. b. infinity. c. unity. d. zero.
At a supermarket, the price of organic milk increases by 20 percent. According to the law of demand, the sale of organic milk would most likely ______.
a. decrease by 10 percent b. increase by 15 percent c. fluctuate between a 5 percent increase and a 5 percent decrease d. stay approximately the same
Compared to a monopolistically competitive firm having the same cost curves, a perfectly competitive firm produces ________ output and charges a ________ price.
A. more; lower B. less; higher C. more; higher D. less; lower
The No Marginal Improvement Principle tells us that, at the best choice:
A. the marginal benefit of the last unit must be at least as large as the marginal cost and the marginal benefit of the next unit must be no greater than the marginal cost. B. marginal cost and marginal benefit of the last unit must always be equal. C. the marginal benefit of the last unit must be at least as large as the marginal cost and the marginal benefit of the next unit must be greater than the marginal cost. D. small changes in the level of an activity will always increase net benefit.