Relative price is the price of a specific good compared to ______.
a. the price index
b. the rate of inflation
c. the price of that good one year earlier
d. the price of other goods
d. the price of other goods
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Nondiscriminatory firms hiring in the market place have a cost advantage.
Answer the following statement true (T) or false (F)
When you accumulate more money,
A) the interest rate you are paid on your currency increases. B) the opportunity cost of holding money decreases. C) your marginal tax rate falls. D) the marginal benefit of holding money decreases. E) you earn a lower rate of interest on your checkable deposit.
The income effect of a price increase causes a decrease in the quantity of a normal good demanded
Indicate whether the statement is true or false
Because it is a machine, a personal computer should be treated as a fixed input in the typical firm's short-run production function
Indicate whether the statement is true or false