Money illusion occurs when we compare dollar amounts
A. without adjusting for inflation.
B. between two years.
C. without adjusting for technology.
D. between the CPI and the GDP.
Answer: A
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In the above figure, a(n) ________ would be set ________
A) effective minimum wage; above $6.00. B) union wage; above $9.00 but would not affect the natural rate of unemployment. C) efficiency wage; below $9.00 D) efficiency wage; above $6.00. E) efficiency wage; above $9.00 and would increase the natural rate of unemployment
In perfect competition, all the following situations arise except ________
A. firms produce an identical good or service B. each firm chooses the price at which to sell the good it produces C. firms can sell any quantity they choose to produce at the market price D. buyers know each seller's price
If shortages or surpluses exist in a market, what helps guide the market back to equilibrium?
a. the invisible hand of competition b. the visible hand of government c. economic conservatives d. economic liberals
As the price level rises, the exchange rate
a. falls, so exports rise and imports fall. b. falls, so exports fall and imports rise. c. rises, so exports rise and imports fall. d. rises, so exports fall and imports rise.