When an individual's purchasing power changes due to a change in the price of a good or service, this is referred to as
A. real-income effect.
B. substitution effect.
C. marginal effect.
D. utility effect.
Answer: A
Economics
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Nominal monthly wages increase from $1,500 to $1,800 while the price of a car increases by 4%. The percentage change in real monthly wages (in terms of cars) is about
A. 14% B. 12% C. 10% D. 16%
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Checking deposits are included in
A) M1 only. B) M2 only. C) M1 and M2. D) neither M1 nor M2.
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The price elasticity of a horizontal demand curve is always
A. infinitely large. B. zero. C. one. D. increasing as price increases.
Economics
Total product is maximized where
A) average product is maximized. B) marginal product is maximized. C) average product is equal to 0. D) marginal product is equal to 0.
Economics