According to the "wealth effect," when the ________ falls, the ________ rises
A) inflation rate; nominal value of household assets
B) unemployment rate; average level of household income
C) price level; the nominal value of household wealth
D) price level; the real value of household wealth
Answer: D
You might also like to view...
Which of the following will NOT shift an economy's production possibilities curve outward?
A. an increase in technology B. an improvement in the literacy rate C. a reduction in the unemployment rate D. an increase in the number of workers available
During a hot summer weekend, the only supermarket near the beach decides to charge consumers $6.50 for the first 12-pack of soda pop, $5.50 for the second and third 12-packs, and $5.25 for all subsequent purchases during the same shopping trip
This would be considered A) an example of declining-block pricing. B) not very smart since consumers will buy soda pop regardless of the price. C) an example of monopoly pricing. D) an example of an inelastic demand curve.
In the long run, economic theory predicts that a monopolistically competitive firm will:
A. earn an economic profit. B. realize all economies of scale. C. equate price and marginal cost. D. have excess production capacity.
Describe the product cycle, including addressing the various inputs that are required over time and the resulting production location decisions
What will be an ideal response?