A price increase causes a consumer's "real" income to:
A. increase.
B. remain unchanged.
C. decrease.
D. vary along the budget line.
Answer: C
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You are closely following the elections in your country this year
The two main candidates who are running for president belong to the two biggest parties that are on opposing ends of the political spectrum—the Conservative Right and the Left Alliance. There are also a few independent candidates. You have decided that you will cast your vote depending on each candidate's stance on various issues like foreign policy, gun rights, taxes, gay marriage, and healthcare. As the campaigns heat up, you notice that the viewpoints expressed by both parties seem to converge to the center rather than being extreme left or right opinions. Given that the candidate with the highest number of votes wins the elections, what do you think could explain this convergence?
The free-rider problem arises if goods are
A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. a and d
China's high net exports must be balanced by:
A. low net capital outflows. B. high net capital outflows. C. lownet imports. D. high net capital inflows.
Real GDP is most commonly used to monitor short-run changes in
a) economic activity. b) the rate at which a person can trade the currency of one country for the currency of another. c) the income distribution over time. d) the price index from the preceding period.