When someone tells you they made $17,000 in 1970:
A. it is difficult to tell from that number if the person was well off or not, because prices have changed so much since then.
B. it is a nominal figure that is hard to understand. A real figure would be more helpful.
C. the income should be adjusted into current dollars to clearly understand what that salary is "worth" in terms of purchasing power.
D. All of these statements are true.
Answer: D
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If output more than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) interindustry trade.
How could transferable pollution rights lead to pollution being reduced at the lowest possible opportunity cost?
Refer to the consumption schedule above. If disposable income is $42,000, then saving is:
$4,000 $2,000 $0 $6,000
The Federal Reserve System is divided into how many districts?
A. 7 B. 5 C. 1 D. 12