The nominal wage increases from $20,000 to $21,000 while the price of a car increases by 7%. In this case, the percentage change in the real annual wage (in terms of cars) is about
A. 2%.
B. -2%.
C. -1%.
D. 5%.
Answer: B
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What can be expected to happen in a country that enacts trade barriers?
A) The rate of population growth will decrease. B) The rate of economic growth will decrease. C) The rate of immigration will increase. D) The rate of technological innovation will increase.
Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?
a. an optimistic business forecast of future income growth b. increased consumer wealth c. an increase in consumer confidence d. all of the above
The following table lists the utility that Sarah receives from consuming bananas at $0.25 a banana. What is the marginal utility of consuming the fourth banana?Number of bananasTotal utility00110222332440546
A. 40 B. 8 C. 32 D. 2
What is the motivation for individuals to hold money?
A) to facilitate transactions B) to reduce risk C) to have liquidity D) all of the above