The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy.
Answer the following statement true (T) or false (F)
True
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Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 10b. C) 101/b. D) b.
If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
a. more than $10. b. less than $10. c. $10. d. $5300.
The effect lag occurs because it takes policymakers some time to recognize that a problem exists in an economy
a. True b. False Indicate whether the statement is true or false
For most goods, the real-income effect of a price change is
A. small because the decision to buy a good depends only on the income of a consumer. B. large because the price of the good is in terms of the currency and the income of the person is also in terms of the currency. C. zero because the real-income effect only applies to durable goods. D. small because the good accounts for a small part of the consumer's budget.